If the marginal propensity to consume is 0.7 and if output increases by $200, then consumption spending
A) increases by $70.
B) decreases by $70.
C) increases by $140.
D) decreases by $140.
C
Economics
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The cross elasticity of demand
A) means that an increase in the demand for one good leads to a decrease in demand for another good. B) measures how a change in the price of one good impacts the demand for another good. C) measures how a change in supply impacts the demand for the good. D) means that an increase in the price of one good leads to an increase in the price of another good. E) measures how a change in income impacts the demand for the good.
Economics
What is the difference between net exports and the current account balance?
What will be an ideal response?
Economics