Use the figure below to answer the following questions.
Figure 11.1.1
This figure describes the relationship between consumption expenditure and disposable income for an economy.
-Refer to Figure 11.1.1.The marginal propensity to consume for this economy is
A) 0.5.
B) 0.2.
C) 0.8.
D) 1.
E) 0.6.
Correct Answer:
Verified
Q1: When the consumption function lies below the
Q3: Use the figure below to answer the
Q4: Dissaving occurs when a household
A)consumes more than
Q5: The marginal propensity to save is calculated
Q6: Disposable income is
A)used for consumption only.
B)aggregate income
Q7: Use the figure below to answer the
Q8: If the marginal propensity to consume is
Q9: The marginal propensity to consume is calculated
Q10: The marginal propensity to consume is the
A)fraction
Q11: A household
A)consumes, saves, or pays taxes out
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