Refer to the given data. Suppose that consumption decreased by $2 billion at each level of DI in each of the three countries. We can conclude that the:
Answer the question on the basis of the following consumption schedules. DI signifies disposable income and C represents consumption expenditures. All figures are in billions of dollars.
A. marginal propensity to consume will remain unchanged in each of the three countries.
B. marginal propensity to consume will decline in each of the three countries.
C. average propensity to save will fall at each level of DI in each of the three countries.
D. marginal propensity to save will rise in each of the three countries.
A. marginal propensity to consume will remain unchanged in each of the three countries.
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Measured as a share of GDP, the net federal debt
a. increased during the 1990s, but fell sharply during 2001-2011. b. fell during most of the 1990s, but rose sharply during 2001-2011. c. was virtually unchanged during the 1990s, but fell sharply during 2001-2011. d. fell during the 1990s, but was virtually unchanged during 2001-2011.
If long-term investments are increasing,
A. current consumption must be increasing. B. interest rates must be relatively low. C. interest rates must be relatively high. D. the people must be experiencing a “defective telescopic faculty.”