The slope of the consumption function equals the marginal propensity to consume
a. true
b. false
a. true
Economics
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Why is money as a medium of exchange important in an economy?
What will be an ideal response?
Economics
Suppose the marginal propensity to consume is 0.75 . If government purchases increase by $100 billion and the extra expenditure is financed with a net tax of $100 billion, by how much will output change?
a. -$400 billion b. $100 billion c. $400 billion d. $0 e. -$100 billion
Economics