In the standard 45-degree line expenditure model, the C + I line and the C line are parallel because,
a. all I is assumed to be autonomous.
b. all I is assumed to be induced.
c. consumption depends on disposable income.
d. I rises with GDP at the same rate as C.
a
Economics
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In the above table, the marginal propensity to save when disposable income changes from $1,000 to $2,000 is
A) 0.1. B) 0.2. C) 0.8. D) -0.2.
Economics
A decrease in quantity and price is consistent with a:
A. leftward shift in supply keeping demand constant. B. rightward shift in demand and a leftward shift in supply. C. leftward shift in demand keeping supply constant. D. rightward shift in supply and demand.
Economics