Multiple Choice
If the marginal propensity to consume (MPC) is equal to 0.9,an increase in household income causes desired consumption expenditure to
A) rise by more than the increase in income.
B) rise by the full increase in income.
C) rise by less than the full increase in income.
D) fall,as an increase in income will increase saving.
E) remain constant,because the MPC is also constant.
Correct Answer:

Verified
Correct Answer:
Verified
Q96: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7713/.jpg" alt=" FIGURE 21-2 Refer
Q97: In a simple macro model with the
Q98: Which of the following statements must be
Q99: Consider the following aggregate expenditure function: AE
Q100: The Smith family's disposable income rose from
Q102: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7713/.jpg" alt=" FIGURE 21-1 Refer
Q103: The table below shows disposable income and
Q104: Suppose aggregate output is demand-determined.If the business
Q105: The table below shows disposable income and
Q106: In a simple macro model with no