Which of the following changes in disposable income would lead to ...

[sjones]

Which of the following changes in disposable income would lead to the smallest increase in consumption?
 a. a 20,000 increase in disposable income, if MPC equals 0.5
  b. a 12,000 increase in disposable income, if MPC equals 0.75
  c. a 15,000 increase in disposable income, if MPC equals 0.6
  d. a 30,000 increase in disposable income, if MPC equals 0.25

Question 2

Empirical evidence suggests that the United States ran close to a balanced budget during the World War II.
 a. True
  b. False
  Indicate whether the statement is true or false

[gasdhashg]

Answer to Question 1

d

Answer to Question 2

False