Multiple Choice
If the marginal propensity to consume is ________, then a $2 trillion increase in disposable income increase consumption expenditure by $1.2 trillion. If the marginal propensity to consume is ________, then a $2 trillion increase in disposable income increases consumption expenditures by $1.6 trillion
A) 0.6; 0.8
B) 1.2; 1.6
C) 1.67; 2.25
D) 6.0; 8.0
E) 0.6; 0.8.
Correct Answer:

Verified
Correct Answer:
Verified
Q156: When aggregate planned expenditure exceeds real GDP,
Q157: <span class="ql-formula" data-value="\begin{array} { c c c
Q158: 14.5 Chapter Figures<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1454/.jpg" alt="14.5 Chapter
Q159: When disposable income increases, consumption expenditure<br>A) also
Q161: <span class="ql-formula" data-value="\begin{array} { c c c
Q162: Aggregate expenditure is equal to<br>A) C +
Q163: "Aggregate planned expenditure is the sum of
Q164: A country reports that when real GDP
Q165: Equilibrium expenditure occurs when<br>A) aggregate planned expenditure
Q368: "If aggregate planned expenditure exceeds real GDP,