Author Question: Using real GDP on the horizontal axis instead of real disposable income implies that a marginal ... (Read 106 times)

ssal · **on:** Jun 30, 2018

Using real GDP on the horizontal axis instead of real disposable income implies that a marginal propensity to consume 0.75 generates for every additional 100 of real GDP

A) 25 of additional saving. B) 56.25 of additional consumption spending.
C) 25 of additional saving and taxes. D) 75 of additional real disposable income.

Question 2

A decrease in consumer wealth will

A) not change autonomous consumption and rotate the consumption function upward.
B) decrease autonomous consumption and shift the consumption function downward.
C) not change autonomous consumption and rotate the consumption function downward.
D) increase autonomous consumption and shift the consumption function upward.