In the above figure, when real disposable income is less than 600, then
A) consumption is less than disposable income. B) consumption is the same as disposable income.
C) consumption is more than disposable income. D) the MPC will fall.
C
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An increase in income in the United States would have what effect on the equilibrium exchange rate and equilibrium quantity of Canadian dollars in the foreign exchange market?
a. decrease in the exchange rate and decrease in the quantity b. decrease in the exchange rate and no effect on the quantity c. increase in the exchange rate and decrease in the quantity d. no change in the exchange rate and increase in the quantity e. increase in the exchange rate and increase in the quantity
FICA is an example of a payroll tax, which is a tax on the wages that firms pay their workers
a. True b. False Indicate whether the statement is true or false