Multiple Choice
The marginal propensity to consume (MPC) :
A) shows how much income changes when consumption falls.
B) is always greater than one.
C) will be equal to one if the MPS is equal to one.
D) shows the fraction of an extra dollar of income that is spent on consumption.
Correct Answer:
Verified
Correct Answer:
Verified
Q50: According to the consumption function, as real
Q51: Suppose that national income is initially at
Q52: If national income is $1500 billion and
Q53: For a given fluctuation in autonomous expenditure,
Q54: Larger the multiplier, larger will be the
Q56: All of the following are components of
Q57: In a closed economy without government, the
Q58: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB10399/.jpg" alt=" Table 6.3 -Refer
Q59: A decrease in the marginal propensity to
Q60: As used in the income-expenditure diagram in