The marginal propensity to consume describes ________. A) the ...

[kshipps]

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

[karlss]

Answer to Question 1

C

Answer to Question 2

C

[kshipps]

Excellent

[TheNamesImani]

TYSM