Jack Nelson, a supervisor in the hardware department at Sears, received a $3,000 increase in his annual disposable income. Suppose his marginal propensity to consume is 0.80. How much of the $3,000 increase will Jack spend on consumption?
A) $3,000 B) $2,750 C) $2,200 D) $2,400 E) $2,500
D
Economics
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Refer to Figure 3-2. An increase in the expected future price of the product would be represented by a movement from
A) A to B. B) B to A. C) S1 to S2. D) S2 to S1.
Economics
Keynes suggested that the short-run aggregate supply (SRAS) curve
A) is vertical. B) is horizontal. C) slopes downward. D) is not a relevant concept.
Economics