Explain why the nation's MPC remains constant as national income increases
Duesenberry explained that consumption spending is rooted in status. If incomes increase, but relative
income positions remain the same, then everyone's MPCs will remain unchanged.
Economics
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Refer to Figure 2-2. What is the opportunity cost of one pound of meat?
A) pound of vegetables B) pounds of vegetables C) 1.6 pounds of vegetables D) 16 pounds of vegetables
Economics
Deficit targeting acts as ________ because it requires taxes to be raised and government spending to be cut during ________.
A. an automatic stabilizer; an expansion B. an automatic stabilizer; a contraction C. an automatic destabilizer; an expansion D. an automatic destabilizer; a contraction
Economics