If consumption is $800 when disposable income is $1,000 . the marginal propensity to consume (MPC) must be 0.80
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
If the Federal Reserve raises the U.S. interest rate, foreigners'
A) demand for U.S. dollars will increase and the exchange rate will rise. B) demand for U.S. dollars will decrease and the exchange rate will fall. C) demand for U.S. dollars will increase and the exchange rate will fall. D) demand for U.S. dollars will decrease and the exchange rate will rise.
The figure above shows the demand and cost curves for a single-price monopoly. Which of the following statements is FALSE?
A) To maximize its profit, the firm will set marginal revenue equal to zero by producing 12.5 units. B) The firm will make an economic profit. C) The firm is a not a natural monopoly. D) The firm will set price where demand is elastic.