Solved

If the MPC = 0

Question 54

Multiple Choice

If the MPC = 0.9 and a household obtains $20,000 more dollars then how much would the household spend of the additional $20,000?

A) $20,000
B) $2,500
C) $17,500
D) $18,000

Related Questions

Q49: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6625/.jpg" alt=" In Figure 1

Q50: Which component of consumption has a negative

Q51: The simplified spending multiplier is calculated as:<br>A)

Q52: If the government wishes to increase GDP

Q53: If the expected profitability of a business

Q55: The Keynesian equilibrium is defined to be

Q56: When PAE decreases then the economy will

Q57: If the domestic income of a nation's

Q59: The marginal propensity to consume (MPC) is

Q94: Which of the following is not a