Use the figure below to answer the following questions.
Figure 27.1.1
This figure describes the relationship between consumption expenditure and disposable income for an economy.
-Refer to Figure 27.1.1. When disposable income is equal to $200 billion, saving is
A) zero.
B) $200 billion.
C) $150 billion.
D) $60 billion.
E) - $60 billion.
Correct Answer:
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Q4: Complete the following sentence. A household
A)consumes or
Q5: Use the figure below to answer the
Q6: When the consumption function lies below the
Q7: The marginal propensity to consume
A)is negative if
Q8: If the marginal propensity to consume is
Q10: The marginal propensity to consume is calculated
Q11: Use the figure below to answer the
Q12: If a household's disposable income increases from
Q13: The marginal propensity to consume is the
A)fraction
Q14: The marginal propensity to save is calculated
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