Solved

The Marginal Propensity to Consume Out of a Permanent Change

Question 45

Multiple Choice

The marginal propensity to consume out of a permanent change in income is approximately:

A) 1
B) 0.5
C) 0
D) none of the above.

Related Questions

Q40: In the one period budget constraint the

Q41: An increase in the interest rate:<br>A)makes future

Q42: The present value of sources of funds

Q43: Real household saving is:<br>A) <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8790/.jpg" alt="Real

Q44: What is an income effect and what

Q46: If the present value of assets at

Q47: A yen today is worth more than

Q48: The marginal propensity to save out of

Q49: An increase in the interest rate can

Q50: Figure 7.1 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8790/.jpg" alt="Figure 7.1