Solved

Which of the Following Is True

Question 27

Multiple Choice

Which of the following is true?
I. 1 − MPS = MPC where MPS = marginal propensity to save and MPC = marginal propensity to consume.
II. personal saving + consumption = gross income
III. ∆disposable income = ∆saving + ∆consumption where ∆ = change in


A) I, II, and III
B) I and II only
C) I and III only
D) II and III only

Correct Answer:

verifed

Verified

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

Related Questions

Q22: Difficulty: Medium Figure 13-4 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5507/.jpg" alt="Difficulty:

Q23: Difficulty: Medium Figure 13-4 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5507/.jpg" alt="Difficulty:

Q29: Difficulty: Medium Figure 13-4 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5507/.jpg" alt="Difficulty:

Q30: Difficulty: Medium Figure 13-4 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5507/.jpg" alt="Difficulty:

Q31: Using the aggregate expenditures model, which of

Q32: Table 13-3<br>All figures in billions of base-year

Q46: The marginal propensity to save is given

Q88: In the simple aggregate expenditure model where

Q203: In the simple aggregate expenditure model where

Q207: Aggregate expenditures that vary with real GDP