Multiple Choice
If net taxes were lowered from $5,000 to $1,000,the marginal propensity to consume is 0.75,and autonomous consumption spending is $10,000,by how much would consumption increase?
A) $3,000
B) $1,250
C) $7,500
D) $3,750
E) $750
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q20: Which of the following is an equilibrium
Q21: When real consumption expenditure is plotted against
Q22: From the perspective of the classical model,many
Q23: If net taxes are included in the
Q24: A movement along the consumption-function line would
Q26: If real consumption spending increases by $400
Q27: Use the table below to determine the
Q28: Which of the following is not an
Q29: The equilibrium level of GDP can be
Q30: In the short run,<br>A) spending depends on