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    Exam 11: Expenditure Multipliers
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    -In the Above Table, There Are No Taxes (So That
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-In the Above Table, There Are No Taxes (So That

Question 406

Question 406

Multiple Choice

  -In the above table, there are no taxes (so that that real GDP equals disposable income) and no imports or exports. If real GDP decreases from $6,000 to $5,000, the marginal propensity to consume is A)  -750. B)  -0.75. C)  0.75. D)  0.80.
-In the above table, there are no taxes (so that that real GDP equals disposable income) and no imports or exports. If real GDP decreases from $6,000 to $5,000, the marginal propensity to consume is


A) -750.
B) -0.75.
C) 0.75.
D) 0.80.

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