Solved

If the Marginal Propensity to Consume Is 0

Question 164

Multiple Choice

If the marginal propensity to consume is 0.5, a decrease in consumption by $100 will shift the aggregate demand curve horizontally to the left by

A) $400.
B) $100.5.
C) $200.
D) $100.

Related Questions

Q159: The multiplier is always larger than one

Q160: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5231/.jpg" alt=" Figure 9.4 -Refer

Q161: Holding other factors constant, an increase in

Q162: In the short run, an increase in

Q163: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5231/.jpg" alt=" Figure 9.1 -Refer

Q165: Many economists have argued that oil prices

Q166: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5231/.jpg" alt=" Figure 9.4 -Refer

Q167: Recall Application 2, "Two Approaches to Determining

Q168: If the economy is in long run

Q169: Recall Application 3, "How the U.S. Economy