The marginal propensity to consume (MPC) can be defined as the
A) change in consumption divided by the change in disposable income.
B) change in disposable income divided by the change in consumption.
C) ratio of income to saving.
D) ratio of saving to consumption.
E) ratio of consumption to investment.
Correct Answer:
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Q46: Net taxes refers to taxes
A) plus transfers.
B)
Q47: An increase in disposable income
A) increases consumption
Q48: As disposable income decreases,the
A) average propensity to
Q49: If disposable income increases,the average propensity to
Q50: If a family's marginal propensity to consume
Q52: The slope of the consumption function between
Q53: When the consumption function is plotted on
Q54: If an increase in a household's disposable
Q55: As incomes go up,the
A) average propensity to
Q56: The fraction,or percentage,of disposable income that is
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