According to the absolute income hypothesis, the marginal propensity to consume
a. decreases as national income increases
b. increases as national income increases
c. is equal to one
d. is constant as national income increases
e. is equal to the marginal propensity to save
A
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Refer to Figure 18-1. Suppose that the U.S. government deficit decreases, causing interest rates in the United States to fall relative to those in the European Union. Assuming all else remains constant, how would this be represented?
A) Supply would increase, demand would increase and the economy moves from D to A to B. B) Supply would decrease, demand would increase and the economy moves from A to D to C. C) Demand would increase and the economy moves from A to B. D) Demand would decrease and the economy moves from B to A.
"To each exactly the same" refers to
A) the productivity standard. B) the free market doctrine. C) the egalitarian principle. D) the Lorenz curve.