Author Question: Bill's disposable income goes from 100,000 in 2010 to 200,000 in 2011, and his consumption spending ... (Read 46 times)

ec501234 · **on:** Jun 30, 2018

Bill's disposable income goes from 100,000 in 2010 to 200,000 in 2011, and his consumption spending goes from 80,000 in 2010 to 140,000 in 2011 . Which of the following statements about Bill is true?
a. Bill's MPC rose between 2010 and 2011.
b. Bill's MPC is equal to 0.7.
c. Bill's MPC is equal to 0.6.
d. Both (a) and (b) are true.

Question 2

Higher taxes affect real GDP indirectly through both the consumption channel and the output supply channel.
a. True
b. False
Indicate whether the statement is true or false