Author Question: If disposable income increases by 500 million, and consumption increases by 400 million, then the ... (Read 66 times)

KWilfred · **on:** Jun 29, 2018

If disposable income increases by 500 million, and consumption increases by 400 million, then the marginal propensity to consume is

A) 1.25. B) 0.8. C) 0.6. D) 0.4.

Question 2

Refer to Table 20-9. Suppose that the data in the table above reflect the price levels in the economy. Given that data, we can say that the cost of living rose by ________ between 2015 and 2016?

A) 2 B) 5 C) 8 D) 11 E) 13