The marginal propensity to consume is:
A. the change in consumer spending minus the change in aggregate disposable income.
B. the change in consumer spending divided by the change in aggregate disposable income.
C. the proportion of total disposable income that the average family consumes.
D. increasing if the marginal propensity to save is increasing.
B. the change in consumer spending divided by the change in aggregate disposable income.
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A good that is both rival and exclusive is called
a. a private good b. a public good c. a quasi-private good d. an external good e. an open access good
Any factor that reduces resource availability causes
a. the aggregate demand curve to shift to the right b. the aggregate demand curve to shift to the left c. the aggregate supply curve to shift to the right d. the aggregate supply curve to shift to the left e. a movement to the left along the existing aggregate supply curve