The MPC is a relationship between
A) a change in consumption and a change in income
B) a change in consumption and a change in saving
C) changes in consumption and changes in saving
D) the ratio of income to consumption at any given level of income
E) the total level of consumption and the total level of saving
Correct Answer:
Verified
Q2: As disposable income increases,_.
A)consumption and saving both
Q5: The consumption function relates consumption spending to
Q15: The consumption function assumes that:
A)only disposable income
Q22: Suppose that when disposable income rises from
Q23: If a household's income falls from $26,000
Q24: A simple statement of the consumption behavior
Q26: Induced saving
A)is that part of saving that
Q28: The marginal propensity to save is the
Q29: If a household's income rises from $20,000
Q31: Induced consumption spending
A)represents consumption that is independent
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