Which of the following statements is true?
A) Higher the income, higher is the marginal propensity to consume.
B) Higher the autonomous consumption expenditure, higher is the marginal propensity to consume.
C) Higher the autonomous consumption expenditure, lower is the marginal propensity to save.
D) Marginal propensity to consume and marginal propensity to save are constant, irrespective of whether . income or autonomous expenditures increase or decrease.
Correct Answer:
Verified
Q1: When the price level is constant:
A) the
Q2: In the short run with fixed wages
Q3: When there is an intersection of an
Q4: Which of the following statements is false?
A)
Q6: Autonomous investment and autonomous consumption are:
A) related
Q7: The relationship between household spending and the
Q8: According to the consumption function, as real
Q9: Which one of the following expressions best
Q10: Empirical data show that a strong, positive
Q11: Which of the following statements about the
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