If your MPC is 0.5, then when your disposable income increases by ...

[james9437]

If your MPC is 0.5, then when your disposable income increases by 100, your consumption expenditure increases by
 
  A) 200. B) 100. C) 95. D) 50. E) 5.

Question 2

Babysitting services the oldest son provides his parents
 
  A) does not count as real GDP nor nominal GDP.
  B) counts as real GDP and nominal GDP.
  C) counts in both real and nominal GDP only if the son is not paid.
  D) counts as real GDP but not nominal GDP.
  E) counts as nominal GDP but not real GDP.

[djofnc]

Answer to Question 1

D

Answer to Question 2

A