If a family's marginal propensity to consume (MPC) is 0.7,it is
A) operating at the break-even point.
B) spending 70% of any increase to its disposable income.
C) necessarily dissaving.
D) spending 70% of its income on consumer goods.
E) saving 70% of its incomE.
Correct Answer:
Verified
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B)
Q47: An increase in disposable income
A) increases consumption
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A) average propensity to
Q49: If disposable income increases,the average propensity to
Q51: The marginal propensity to consume (MPC)can be
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Q53: When the consumption function is plotted on
Q54: If an increase in a household's disposable
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A) average propensity to
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