Solved

When Disposable Income Is $8 Trillion, Consumption Expenditure Is $5

Question 35

Multiple Choice

When disposable income is $8 trillion, consumption expenditure is $5 trillion; when disposable income is $5 trillion, consumption expenditure is $3 trillion.The MPC is


A) (5/8 + 3/5) = 1.225.
B) (5 + 3) ÷ (8 + 5) = 0.615.
C) (5 - 3) ÷ (8 - 5) = 0.667.
D) (5 + 3) ÷ (8 - 5) = 2.667.
E) (8 - 5) ÷ (5 - 3) = 1.333.

Correct Answer:

verifed

Verified

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

Related Questions

Q30: List and explain factors that determine the

Q31: Which of the following is true?<br>A) Actual

Q32: If the slope of the aggregate expenditure

Q33: Equilibrium expenditure is the level of aggregate

Q34: If an increase of $10 billion of

Q36: When Joe's disposable income is $50,000, his

Q37: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1454/.jpg" alt=" The figure

Q38: The idea of the multiplier is that

Q40: The _ the marginal tax rate, the

Q349: How is it possible for consumption expenditure