Multiple Choice
Assume that the economy includes only consumers and businesses, and is in equilibrium with income equal to $6 million and consumption spending equal to $5 million. Which statement is correct?
A) Investment is $1 million.
B) There is no saving in this economy.
C) The economy will go into disequilibrium because consumption is not equal to income.
D) The marginal propensity to consume is 0.83.
Correct Answer:
Verified
Correct Answer:
Verified
Q33: Which factor is NOT a determinant of
Q34: When Tyson's income was $50,000 per year,
Q35: The marginal propensity to consume<br>A) increases when
Q36: Equilibrium in the Keynesian model requires that
Q37: If aggregate expenditures equal $6,200 and aggregate
Q39: (Table) The following table shows data on
Q40: Which country had the lowest national savings
Q41: If the marginal propensity to consume is
Q42: Joe figures that if the spending multiplier
Q43: Equal changes in government spending and taxation