The marginal propensity to consume (MPC)
A) shows the percentage of real disposable income consumed at each level of income.
B) shows how much of an extra dollar of real disposable income is spent.
C) shows how much real disposable income changes when consumption falls.
D) is greater than 1 only if the marginal propensity to save is greater than 1.
B
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Automatic changes in tax revenues and expenditures that occur as a result of fluctuations in real GDP are referred to as automatic
A) discretionary policy. B) discretionary taxes and expenditure. C) government. D) stabilizers. E) taxes and expenditure.
Evidence from the United States and other foreign countries indicates that
A) there is a strong positive association between inflation and growth rate of money over long periods of time. B) there is little support for the assertion that "inflation is always and everywhere a monetary phenomenon." C) countries with low monetary growth rates tend to experience higher rates of inflation, all else being constant. D) money growth is clearly unrelated to inflation.