Multiple Choice
In general, the marginal propensity to spend is the change in total desired expenditure induced by a change in whereas the marginal propensity to consume is the change in desired consumption expenditure induced by a change in . In the case of the simplest macro model with no government and no international trade, however, the marginal propensity to spend is the marginal propensity to consume.
A) national income ; disposable income ; equal to
B) national income ; disposable income ; greater than
C) national income ; disposable income ; smaller than
D) disposable income ; national income ; equal to
E) disposable income ; national income ; greater than
Correct Answer:

Verified
Correct Answer:
Verified
Q1: The Smith family's disposable income rose from
Q2: When desired consumption exceeds disposable income, desired
Q3: Consider the simplest macro model with a
Q4: The schedule that relates the level of
Q5: Consider a consumption function that is upward
Q7: "The marginal propensity to consume" refers to
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Q9: Suppose the price level is constant, output
Q10: Consider a simple macro model with demand-
Q11: The aggregate consumption function is based on