Solved

In a Private Closed Economy, National Income Is $4

Question 57

Multiple Choice

In a private closed economy, national income is $4.5 trillion and savings equals $6.4 billion. Based on this data, the marginal propensity to consume:


A) Decreases as income increases
B) Is greater than the marginal propensity to save
C) Is less than the average propensity to consume
D) Cannot be calculated from the data given

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q52: Refer to the</p></div><svg width=

Q53: An increase in household wealth that creates

Q54: The disposable income (DI) and consumption (C)

Q55: The disposable income (DI) and consumption (C)

Q56: Refer to the</p></div><svg width=

Q58: Which of the following may shift the

Q59: The disposable income (DI) and consumption (C)

Q60: If the consumption schedule shifts downward, and

Q61: A change in interest rates would shift

Q62: One factor that shifts the consumption schedule

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents