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Author Question: The marginal propensity to consume describes ________. A) the tendency to consume fringe, or ... (Read 88 times)

kshipps

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on: Jun 30, 2018
The marginal propensity to consume describes ________.
 
  A) the tendency to consume fringe, or unusual items
  B) the impact of a change in spending on income
  C) the impact on consumption resulting from a change in income
  D) lifetime consumption resources

Question 2

If the public believes that the commitment to a nominal anchor is not credible, the effect of a positive aggregate demand shock is for ________.
 
  A) short-run aggregate supply to shift down
  B) short-run aggregate supply to remain unchanged
  C) short-run aggregate supply to shift up
  D) inflation, but not economic activity, to increase


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karlss

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Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

C


kshipps

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Reply 2 on: Jun 30, 2018
Wow, this really help

bassamabas

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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