The marginal propensity to consume:
A. is closely linked to the multiplier effect of government spending.
B. is the amount by which consumption increases when after-tax income increases by $1.
C. is a value between 0 and 1.
D. All of these are true.
Answer: D
Economics
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Which of the following assumptions is TRUE about monopolistic competition?
A) The firm's products are differentiated. B) There are few producers of the product. C) Firms will not advertise. D) It is difficult for firms to enter this industry.
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A factory produces 1,000 MP3 players per week. AVC = $10, FC = 5,000, the factory TC equals:
A. 15 B. 5,005 C. 6,000 D. 15,000 E. 50,000
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