Multiple Choice
Assume that consumption in the United States is $9,000 billion in 2009.If the MPC is 0.8 and disposable income increases by $1,000 billion in 2010, then the level of consumption in 2010 will be
A) $10,000 billion.
B) $9,800 billion.
C) $9,000 billion.
D) $7,200 billion.
Correct Answer:
Verified
Correct Answer:
Verified
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Q9: The numerical value of the MPC is
Q10: The slope of the consumption function is
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Q12: The book that is the basis for
Q14: The marginal propensity to consume is<br>A)disposable income
Q15: Taxes are not considered a leakage because
Q16: The main reason that the 1975, 2008,
Q17: The difference between Gross National Product and
Q18: Suppose the stock market rises, causing a