Which of the following changes in disposable income would lead to the greatest increase in consumption?
a. a $20,000 increase in disposable income, if MPC equals 0.5
b. a $12,000 increase in disposable income, if MPC equals 0.75
c. a $15,000 increase in disposable income, if MPC equals 0.6
d. a $30,000 increase in disposable income, if MPC equals 0.25
a
Economics
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Issuing marketable emission allowance permits to polluting firms will result in those firms polluting more than would be desired by the benevolent social planner
Indicate whether the statement is true or false
Economics
Tariffs and quotas create a loss in social welfare because
A) producer surplus declines. B) revenues from tariffs are misspent. C) consumer surplus declines. D) All of the above.
Economics