Multiple Choice
(Advanced analysis) Assume the following consumption schedule: C = 20 + 0.9Y, where C is consumption and Y is disposable income. The MPC is
A) 0.45.
B) 0.20.
C) 0.50.
D) 0.90.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q3: In contrast to investment, consumption is<br>A) relatively
Q4: 1 − MPC = MPS.
Q5: The investment demand curve will shift to
Q6: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8601/.jpg" alt=" Refer to the
Q7: Dissaving occurs where<br>A) income exceeds consumption.<br>B) saving
Q9: <span class="ql-formula" data-value="\begin{array} { | c |
Q10: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8601/.jpg" alt=" Refer to the
Q11: If DI is $275 billion and the
Q12: In an economy, for every $10 million
Q13: If Trent's MPC is 0.80, this means