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Author Question: The value of the marginal propensity to consume is ________. A) equal to one B) between zero and ... (Read 88 times)

yoooooman

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on: Jun 30, 2018
The value of the marginal propensity to consume is ________.
 
  A) equal to one
  B) between zero and one
  C) greater than one
  D) less than zero

Question 2

Why does the Fed attempt to achieve a low, stable rate of inflation rather than an inflation rate of 0?
 
  What will be an ideal response?


Chelseyj.hasty

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Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

With low and stable inflation, market prices efficiently allocate resources in the economy, so the economy is more productive and living standards are higher in the long run.


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