Solved

Exhibit 8-1 Disposable Income and Consumption Data in Exhibit

Question 198

Multiple Choice

Exhibit 8-1 Disposable income and consumption data Exhibit 8-1 Disposable income and consumption data In Exhibit 8-1, when disposable income is increased from $2,000 to $3,000 to $4,000, A) total consumption increases by $1,000. B) the marginal propensity to consume remains constant. C) the marginal propensity to consume increases from 0.6 to 0.7. D) the marginal propensity to consume decreases from 0.8 to 0.7. E) the marginal propensity to consume decreases from 0.7 to 0.6. In Exhibit 8-1, when disposable income is increased from $2,000 to $3,000 to $4,000,


A) total consumption increases by $1,000.
B) the marginal propensity to consume remains constant.
C) the marginal propensity to consume increases from 0.6 to 0.7.
D) the marginal propensity to consume decreases from 0.8 to 0.7.
E) the marginal propensity to consume decreases from 0.7 to 0.6.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q193: As shown in Exhibit 8-2, the break-even

Q194: Exhibit 8-4 Disposable income and consumption data

Q195: The relationship between consumer expenditures and disposable

Q196: The Keynesian model of macro equilibrium provided

Q197: Which of the following would shift the

Q199: Exhibit 8-10 Consumption function <img src="https://d2lvgg3v3hfg70.cloudfront.net/TBX9027/.jpg" alt="Exhibit

Q200: The marginal propensity to consume is:<br>A)the change

Q201: Keynesian economics:<br>A)affirms the classical economists' basic premise

Q202: Saving is disposable personal income spent on

Q203: The hands-off view of the classical school