Author Question: If the marginal propensity to consume is equal to 0.70 and income rises by 20 billion in an economy, ... (Read 48 times)

elizabeth18 · **on:** Jun 30, 2018

If the marginal propensity to consume is equal to 0.70 and income rises by 20 billion in an economy, then consumption spending will increase by:
a. 6 billion.
b. 14 billion.
c. 20 billion.
d. 28 billion.
e. 67 billion.

Question 2

When negative externalities like pollution exist, competition leads to:
a. a socially efficient outcome.
b. too few goods being bought and sold.
c. a market equilibrium price that is too high.
d. more production than would be efficient.

voltaire123 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

b

Answer to Question 2

d

elizabeth18 · **Reply #2 on:** Jun 30, 2018

Correct answers!

voltaire123 · **Reply #3 on:** Jun 30, 2018

Great! Please up vote

Author Question: If the marginal propensity to consume is equal to 0.70 and income rises by 20 billion in an economy, ... (Read 48 times)

elizabeth18

If the marginal propensity to consume is equal to 0.70 and income rises by 20 billion in an economy, ...

voltaire123

If the marginal propensity to consume is equal to 0.70 and income rises by 20 billion in an economy, ...

Related Topics

Need homework help now?

elizabeth18

If the marginal propensity to consume is equal to 0.70 and income rises by 20 billion in an economy, ...

voltaire123

If the marginal propensity to consume is equal to 0.70 and income rises by 20 billion in an economy, ...