When disposable income is $8 trillion, consumption expenditure is $5 trillion; when disposable income is $5 trillion, consumption expenditure is $3 trillion. The MPC is
A) (5 + 3) ÷ (8 + 5) = 0.615.
B) (5 - 3) ÷ (8 - 5) = 0.667.
C) (5 + 3) ÷ (8 - 5) = 2.667.
D) (5/8 + 3/5) = 1.225.
E) (8 - 5) ÷ (5 - 3) = 1.333.
Correct Answer:
Verified
Q23: Which components of aggregate expenditure change as
Q24: Autonomous expenditure is expenditure that is
A) not
Q25: Q26: The AE curve illustrates the relationship between Q27: Which of the following is NOT included Q29: Induced expenditures are defined as that part Q30: A rise in the real interest rate Q31: When disposable income increases from $400 billion
A)
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