Solved

A Change in Taxes of a Given Amount Shifts the Consumption

Question 60

Multiple Choice

A change in taxes of a given amount shifts the consumption function vertically by ____ than that amount, because the marginal propensity to consume is ____.


A) ​less; less than 1
B) ​greater; greater than 1
C) ​greater; always equal to 1.
D) ​less; equal to zero.

Correct Answer:

verifed

Verified

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

Related Questions

Q55: If consumption spending is the only variable

Q56: Which of the following is positively related

Q57: ​Exhibit 23-1 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5768/.jpg" alt="​Exhibit 23-1

Q58: ​Exhibit 23-1 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5768/.jpg" alt="​Exhibit 23-1

Q59: The Keynesian-cross model is a complete macroeconomic

Q61: The Keynesian-cross model suggests that increased saving

Q62: Which of the following will result as

Q63: Marginal propensity to consume is equal to

Q64: If Pat's income increased from $250,000 to

Q65: Autonomous determinants of consumption expenditures are dependent