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Author Question: The marginal propensity to consume (MPC) is defined as: a. the additional consumption that results ... (Read 123 times)

tingc95

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The marginal propensity to consume (MPC) is defined as:
 a. the additional consumption that results from one dollar increase in disposable income.
  b. the fraction of total disposable income that households spend on consumption.
 c. the fraction of total disposable income that households save.
 d. the additional disposable income households earn in a given period.

Question 2

When the price level increases, the effect of a change in government spending on real GDP will be understated.
 a. True
  b. False
  Indicate whether the statement is true or false



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Jordin Calloway

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Answer to Question 1

a

Answer to Question 2

True





 

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