If consumption is $8,000 when disposable income is $10,000, the marginal propensity to consume
A) is 0.50.
B) is 0.75.
C) is 0.80.
D) is 1.25.
E) cannot be determined from the information given.
Correct Answer:
Verified
Q1: Disposable income is
A)used for consumption only.
B)aggregate income
Q2: If consumption expenditure for a household increases
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
Q9: Use the figure below to answer the
Q10: The marginal propensity to consume is calculated
Q11: Use the figure below to answer the
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