Using real national income on the horizontal axis instead of real disposable income implies that a marginal propensity to consume 0.75 generates for every additional $100 of real national income
A) $75 of additional real disposable income.
B) $25 of additional saving.
C) $56.25 of additional consumption spending.
D) $25 of additional saving and taxes.
Correct Answer:
Verified
Q47: The MPC can best be defined as
A)that
Q48: The consumption function will shift upward when
A)real
Q49: Suppose investment spending is $5 billion,real disposable
Q50: The marginal propensity to consume is found
Q51: Planned expenditures equals real disposable income
A)at every
Q53: Technological progress should lead to
A)an outward (rightward)shift
Q55: The planned investment function will shift downward
Q136: The ratio of the change in consumption
Q265: In the Keynesian model, planned investment is
Q273: If business executives become more optimistic about
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