Everything else held constant, if consumption expenditure falls by 160 when disposable income falls by 200, the mpc is

A) 0.
B) 0.2.
C) 0.4.
D) 0.8.

D

Economics

You might also like to view...

Initially, demand-pull inflation will

A) increase both the price level and increase real GDP. B) shift the aggregate supply curve rightward. C) decrease potential GDP. D) increase the price level and decrease real GDP. E) increase the price level and not change real GDP.

Economics

Which of the following goods is most likely to be associated with monopolistic competition?

a. Gasoline b. Milk c. Cookies d. Wheat

Economics