Home / Questions / The marginal propensity to consume is A) the slope of the savings function. B) never gr
The marginal propensity to consume is
A) the slope of the savings function.
B) never greater than 1.
C) the percentage or fraction of income that is consumed.
D) the percentage change in disposable income.
80) The size of the marginal propensity to consume
A) is negative if dissaving is present.
B) is between 0 and 1.
C) equals 1.
D) exceeds 1.
81) If consumption expenditures for a household increase from $1000 to $1800 when disposable income rises from $1000 to $2000, the marginal propensity to consume is
A) 0.8.
B) 0.18.
C) 0.3.
D) 0.2.
82) If the marginal propensity to consume is 0.8, every $10 increase in disposable income increases
A) consumption expenditure by $0.80.
B) consumption expenditure by $18.00.
C) saving by $0.20.
D) consumption expenditure by $8.00.
83) Suppose disposable income increases from $7 trillion to $8 trillion. At the same time, consumption expenditure increases from $6.8 trillion to ________. Thus the MPC must equal ________.
A) $7.8 trillion; 0.80
B) $7.6 trillion; 0.80
C) $7.4 trillion; 0.40
D) $8 trillion; 1.00
84) When disposable income increases from $6 trillion to $6.5 trillion, consumption expenditure increase from $5.5 trillion to $5.9 trillion. The MPC equals
A) 0.75.
B) 0.76.
C) 0.8.
D) 0.2.
85) Between 2008 and 2009 the government reported that disposable income decreased by $300 billion. If the MPC equals 0.8, then consumption expenditure
A) decreases by $40 billion.
B) decreases by $1,500 billion.
C) decreases by $24 billion.
D) decreases by $32 billion.
86) Between 2008 and 2009 the government reported that disposable income decreased by $300 billion and consumption expenditure decreased by $180 billion. Based on these data, the MPC equals
A) 4.4.
B) 0.80.
C) 0.60.
D) $120 billion.
87) Suppose disposable income increases from $5 trillion to $6 trillion. As a result, consumption expenditure increases from $4 trillion to ________. This result means the MPC equals ________.
A) $4.5 trillion; 4.50
B) $5 trillion; 0.80
C) $4.8 trillion; 0.80
D) $6 trillion; 1.00
88) The marginal propensity to save is
A) total saving divided by total disposable income.
B) total saving divided by the change in disposable income.
C) the change in saving divided by the change in consumption expenditure.
D) the change in saving divided by the change in disposable income.
Dec 07 2019 View more View Less
Briefly explain whether investors should expect a higher return from holding portfolio A versus portfolio B under capital asset pricing theory (CAPM). Assume that both po...
Jun 17 2020Find the absolute maximum and minimum values of f on the set DD is the quadrilateral whose vertices are and
Jun 20 2021The following data collected from the Australian Bureau of Meteorology Website (http://www.bom.gov.au/climate/data/?ref=ftr) gives the daily rainfall data (includes all ...
Apr 15 2020Securiites RegulationMary and Paul withdraw from DSI to set up their own firm. To obtain operating capital, they solicit investors, who agree to become “general partners....
Aug 09 2021You estimate that your cattle farm will generate $ .15 million of profits on sales of $ 3 million under normal economic conditions and that the degree of operating levera...
Jul 09 2021DETAILS SCALCET8M 11.6.009. Use the Ratio Test to determine whether the series is convergent or divergent. oo (-1)^- 1 7" 593 n = 1 Identify an: Evaluate the following l...
Jun 02 2021What is the purpose of tort law? What types of damages are available in tort lawsuits?
Aug 18 2021Iron pyrite, often called “fool’s gold,” has the formula FeS2 . If you could convert 15.8 kg of iron pyrite to iron metal, what mass of the metal would you obtain?
Jul 23 2021Corporate Ethics. Is it unfair or unethical for corporations to create classes of stock with unequal voting rights?
May 25 2020Construct an exponential waveform that fits entirely within the nonshaded region in Figure P5–20.
Jun 15 2020