Which of the following changes in disposable income would lead to the greatest increase in consumption?
A) a $20 000 increase in disposable income, if MPC equals 0.5
B) a $15 000 increase in disposable income, if MPC equals 0.6
C) a $12 000 increase in disposable income, if MPC equals 0.75
D) a $30 000 increase in disposable income, if MPC equals 0.25
Correct Answer:
Verified
Q19: Bill's disposable income goes from $100 000
Q20: Fred's consumption purchases fall from $140 000
Q21: If consumption in Canada was 68 percent
Q22: With which of the following marginal propensities
Q23: If private consumption in Canada was 69
Q25: In adding the nation's total output,which of
Q26: With which of the following marginal propensities
Q27: Which of the following changes in taxes
Q28: If private consumption in Canada was 67
Q29: What is an increase in interest rates
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