If your MPC is 0.5, then when your disposable income increases by $100, your consumption expenditure increases by

A) $200. B) $100. C) $95. D) $50. E) $5.

D

Economics

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What effect does an increase in real GDP have on the demand for money?

What will be an ideal response?

Economics

If the price of a commodity is above marginal cost, then the economy will tend to

a. overproduce the item. b. underproduce the item. c. produce the optimal amount of the item. d. overproduce and underproduce the item cyclically.

Economics