The marginal propensity to consume (MPC) is defined as the fraction of
a. extra income that a household consumes rather than saves.
b. extra income that a household either consumes or saves.
c. total income that a household consumes rather than saves.
d. total income that a household either consumes or saves.
a
Economics
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One of the major effects of trade liberalization has been
A) the liberal use of tariffs and quotas. B) an increase in the use of beggar-thy-neighbor trade policies. C) the globalization of supply chains. D) an increase in the world price for most goods.
Economics
To correct for negative externalities, the government
A) should allow the price system do the correction. B) can impose a tax. C) can provide a subsidy to consumers. D) should create a public good.
Economics