Multiple Choice
The marginal propensity to consume (MPC) is defined as:
A) the additional consumption that results from one dollar increase in disposable income.
B) the fraction of total disposable income that households spend on consumption.
C) the fraction of total disposable income that households save.
D) the additional disposable income households earn in a given period.
Correct Answer:
Verified
Correct Answer:
Verified
Q22: Consumption expenditure tends to increase when consumers
Q23: Identify factors that would cause consumption spending
Q24: If government spending increased by $100 billion
Q25: Which of the following is not true
Q26: In the simplest Keynesian expenditure model, which
Q28: A change in aggregate expenditures for reasons
Q29: If government spending increased by $50 billion
Q30: Which of the following changes in disposable
Q31: Bill's disposable income goes from $100,000 in
Q32: Keynes emphasized the idea that wages and