The consumption and saving schedules reveal that the:
A. MPC is greater than zero but less than one.
B. MPC and APC are equal at the point where the consumption schedule intersects the 45-
degree line.
C. APS is positive at all income levels.
D. MPC is equal to or greater than one at all income levels.
A. MPC is greater than zero but less than one.
Economics
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If government purchases increase by $10 billion and the economy's MPC is .8, the aggregate demand curve will shift ________.
A. leftward by $40 billion at each price level B. leftward by $50 billion at each price level C. rightward by $50 billion at each price level D. rightward by $10 billion at each price level
Economics
The U.S. income tax is a:
A. proportional tax. B. progressive tax. C. singular tax. D. regressive tax.
Economics