If a household's income rises from $20,000 to $22,000 and its consumption spending rises from $19,000 to $20,500,then its
A) marginal propensity to save is 0.70
B) marginal propensity to save is 0.02
C) marginal propensity to consume is 0.93
D) marginal propensity to consume is 0.95
E) marginal propensity to consume is 0.75
Correct Answer:
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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
Q24: A simple statement of the consumption behavior
Q26: Induced saving
A)is that part of saving that
Q27: The MPC is a relationship between
A)a change
Q28: The marginal propensity to save is the
Q31: Induced consumption spending
A)represents consumption that is independent
Q33: If the MPC < 1 and a
Q34: At the equilibrium level of real GDP,the
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