People hold money even during inflationary episodes when other assets prove to be better stores of value. This can be explained by the fact that money is

Marginal propensity to consume

A) is the amount of consumption that is independent of the level of disposable income. B) is the same as the break-even point. C) is the proportion of total disposable income that is consumed. D) gives the amount a person changes planned consumption for a change in real disposable income.

Which of the following is included in the government expenditure component of the expenditure approach to GDP?

A) state government expenditure on local schools B) transfer payments C) changes in inventories D) taxes