If the CPI rises from 206.7 to 212.7 between two consecutive years, by how much has the cost of living changed between these two years?
A) The cost of living has increased by 6. B) The cost of living has increased by 12.7.
C) The cost of living has decreased by 6. D) The cost of living has increased by 2.9.
Question 2
If the MPC is 0.95, then a 10 million increase in disposable income will
A) increase consumption by 200 million. B) decrease consumption by 105 million
C) increase consumption by 9.5 million. D) increase consumption by 950 million.
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