What is the marginal propensity to consume?
A) the change in consumption expenditure divided by the change in disposable income
B) the percentage of disposable income that is consumed
C) one minus the fraction of total disposable income that is saved
D) the percentage of total income that is consumed
Correct Answer:
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Q57: The vertical distance between the 45-degree line
Q58: When disposable income equals $800 billion, planned
Q59: Dissaving
A) is equal to consumption expenditure when
Q60: Where the consumption function crosses the 45°
Q61: The saving function shows a _ relationship
Q63: Saving rather than dissaving occurs at any
Q64: An increase in disposable income shifts
A) both
Q65: The marginal propensity to consume is equal
Q66: At a level of disposable income of
Q67: An increase in disposable income
A) shifts the
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