Multiple Choice
Because the long-run marginal propensity to consume is
A) smaller than the short-run marginal propensity to consume; consumption is more volatile over the business cycle than personal disposable income.
B) larger than the short-run marginal propensity to consume; consumption is less volatile over the business cycle than personal disposable income.
C) larger than the short-run marginal propensity to consume; consumption is more volatile over the business cycle than personal disposable income.
D) smaller than the short-run marginal propensity to consume; consumption is less volatile over the business cycle than personal disposable income.
E) identical to the short-run marginal propensity to consume.
Correct Answer:
Verified
Correct Answer:
Verified
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