Multiple Choice
"The marginal propensity to consume" refers to the additional
A) desired saving that occurs out of an additional dollar of disposable income.
B) desired consumption that occurs over time.
C) desired consumption that occurs out of an additional dollar of disposable income.
D) desired consumption that occurs out of an additional dollar of investment.
E) desired consumption caused by a change in tastes.
Correct Answer:
Verified
Correct Answer:
Verified
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
Q6: In general, the marginal propensity to spend
Q8: The aggregate expenditure (AE)function is an upward-
Q9: Suppose the price level is constant, output
Q10: Consider a simple macro model with demand-
Q11: The aggregate consumption function is based on
Q12: The change in desired consumption divided by