Multiple Choice
If the MPC is 0.60 and disposable income increases from $20,000 billion to $22,000 billion,consumption will increase by
A) $2,000 billion.
B) $800 billion.
C) $1,200 billion.
D) $600 billion.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q62: The MPC + MPS must always equal<br>A)The
Q63: If tax policies become less favorable,then<br>A)The AD
Q64: What are the two types of consumer
Q65: The change in total spending from additional
Q66: A recessionary gap<br>A)Would cause a depletion of
Q68: The combination of price level and real
Q69: The investment demand curve would shift to
Q70: Table 9.1 <span class="ql-formula" data-value="\begin{array}
Q71: If,in the aggregate,consumers spend 75 cents of
Q72: A recessionary gap implies that<br>A)Aggregate demand is