Refer to the diagram, in which solid arrows reflect real flows; broken arrows are monetary flows. Flow (8) might represent:
A. personal income taxes.
B. automobile purchases by the state of Maine.
C. the services of firefighters.
D. subsidies to farmers.
B. automobile purchases by the state of Maine.
Economics
You might also like to view...
The fraction of a change in disposable income that is consumed is called _____
a. autonomous consumption b. induced consumption c. the multiplier d. the marginal propensity to consume e. the marginal propensity to save
Economics
The idea that consumption increases at the same rate as national income so that MPC is constant, is known as the
a. absolute income hypothesis b. Keynesian income hypothesis c. relative income hypothesis d. permanent income hypothesis e. rational income hypothesis
Economics