Along a linear consumption function,
A) the average propensity to consume rises with income, but the marginal propensity to consume falls with an increase in income.
B) the marginal propensity to consume rises with an increase in income.
C) the average propensity to consume falls with an increase in income.
D) both the average propensity to consume and the marginal propensity to consume rise with an increase in income.
C
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When demand is elastic, marginal revenue is
A) positive. B) negative. C) zero. D) increasing as output increases. E) undefined.
Which of the following is true of the U.S. balance of payments?
A) It includes as receipts all inflows of funds from foreigners to the United States. B) It includes as receipts only inflows of funds used to purchase U.S. produced goods and services. C) It includes as receipts inflows of funds used to purchase U.S. goods or services or to acquire U.S. assets but not funds received as unilateral transfers. D) It includes as receipts inflows of funds used to purchase U.S. goods or services and funds received as unilateral transfers but not inflows of funds used to acquire U.S. assets.