Multiple Choice
When Tyson's income was $50,000 per year, his consumption was $47,500, and his saving was $2,500. Tyson recently got a $5,000 raise. He raised his consumption to $51,500 and his saving to $3,500. Tyson's marginal propensity to consume is
A) 0.05.
B) 0.50.
C) 0.80.
D) 0.95.
Correct Answer:
Verified
Correct Answer:
Verified
Q29: (Table) When disposable income increases from $1,000
Q30: In Keynesian macroeconomic equilibrium, AE = Y
Q31: What share of U.S. GDP is consumption?<br>A)
Q32: Keynes's insight during the Great Depression was
Q33: Which factor is NOT a determinant of
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
Q38: Assume that the economy includes only consumers
Q39: (Table) The following table shows data on