Author Question: The marginal propensity to consume (MPC) can best be defined as that fraction of A) real ... (Read 75 times)

Kthamas · **on:** Jun 30, 2018

The marginal propensity to consume (MPC) can best be defined as that fraction of

A) real disposable income that is not consumed.
B) a change in real disposable income that is spent.
C) a change in real disposable income that is saved.
D) real disposable income that is consumed.

Question 2

New growth theorists conclude that

A) invention is more important than innovation in spurring economic growth.
B) economic growth can continue as long as we keep coming up with new ideas.
C) rates of global economic growth are limited by the amount of raw materials available.
D) the amount of technological innovation in an economy is independent of the rewards offered for innovation.