Daniela receives a tax refund of $800. Of this, she spends $600 and saves $200. Daniela's marginal propensity to consume is:
A) 0.6.
B) 0.6
C) 0.75
D) 0.75.
E) 0.25
F) 0.25.
G) 0.20
H) 0.20.
Correct Answer:
Verified
Q148: When future income rises, current consumption:
A)falls.
B)falls
C)rises
D)rises.
E)is unaffected
F)is
Q149: The MOST important determinant of consumption is:
A)the
Q150: The marginal propensity to consume is 0.5,
Q151: The MOST important factor affecting a household's
Q152: Other things equal, expectations of lower income
Q153: In the consumption function, an individual household's
Q154: If income increases by $1,000, and consumption
Q155: The marginal propensity to consume is _
Q156: If income increases:
A)the consumption function will shift
Q157: If the marginal propensity to consume is
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