Author Question: If your disposable personal income increases from 30,000 to 40,000 and your savings increases from ... (Read 66 times)

TFauchery · **on:** Jun 30, 2018

If your disposable personal income increases from 30,000 to 40,000 and your savings increases from 2,000 to 4,000 . your marginal propensity to save (MPS) is:
a. 0.2.
b. 0.4.
c. 0.5.
d. 0.8.
e. 1.0.

Question 2

Which of the following statements is true?
a. The national debt as a percentage of GDP is greater today than during any other period in our nation's history.
b. A sizeable external national debt will transfer purchasing power away from foreigners to domestic citizens.
c. Keynesian theory assumes a total crowding out effect associated with deficit spending.
d. U.S. national debt is 12 times its size in 1980.