The MPC and MPS measure changes in consumption expenditure and saving that result from changes in
A. expected inflation
B. disposable income
C. expected future income
D. government expenditures on goods and services.
Answer: B. disposable income
Economics
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Which of the following is NOT a key principle of economics?
A) Optimization B) Equilibrium C) Empiricism D) Substitution
Economics
Potential output depends on all of the following except one. Which is the exception?
a. The supply of labor b. Labor productivity c. Household choices regarding labor and leisure d. The technology in current use e. The number of consumers in the market
Economics