If consumption is defined as C = 2,400 + 0.9Y, then the marginal ...

[naturalchemist]

If consumption is defined as C = 2,400 + 0.9Y, then the marginal propensity to consume is 0.9.
 
  Indicate whether the statement is true or false

Question 2

When housing prices ________, as they did beginning in 2006 following the housing market bubble, consumption spending on furniture, appliances, and home improvements decline as many households find it ________ to borrow against the value of their
 
  homes.
  A) rise; harder B) fall; harder C) fall; easier D) rise; easier

[momolu]

Answer to Question 1

TRUE

Answer to Question 2

B