If the MPC = 0.9 and a household obtains $20,000 more dollars then how much would the household spend of the additional $20,000?
A) $20,000
B) $2,500
C) $17,500
D) $18,000
Correct Answer:
Verified
Q13: Suppose that John allocates $10,000 of his
Q14: The four components of aggregate expenditure (AE)
Q15: Which component of consumption has a negative
Q16: The marginal propensity to consume (MPC) is
Q17: In general we can note that households
Q19: If the MPC = 0.75 for a
Q20: The economist in the 1930s who is
Q21: What type of relationship does the real
Q22: Transfer payments are payments that are:
A) made
Q23: When we say investment in economics we
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