If an individual's income increases from $500 to $700 and their spending increases by $150, what is the marginal propensity to consume?
A) 0.75
B) 1.25
C) 4
D) 50
Correct Answer:
Verified
Q1: Which term refers to the positive feedback
Q3: Which of the following tends to make
Q4: What is the term for the fraction
Q5: Which of the following best defines the
Q6: Fiscal policy refers to the idea that
Q7: Assume that the MPC is 0.9. What
Q8: A decrease in government spending initially and
Q9: If the MPC = 0.8, what is
Q10: If the MPC is 0.6, what is
Q11: Which of the following shifts aggregate demand
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents