Focus on the concept of marginal propensity to consume and reflect on which of the following would be implied by a highmarginal propensity to consume. O A small change in consumption when income changes O A high saving rate O A high marginal tax rate O An equilibrium level of income near full employment O A low marginal propensity to save
Focus on the concept of marginal propensity to consume and reflect on which of the following would be implied by a highmarginal propensity to consume. O A small change in consumption when income changes O A high saving rate O A high marginal tax rate O An equilibrium level of income near full employment O A low marginal propensity to save
Chapter9: Aggregate Expenditures
Section: Chapter Questions
Problem 10E
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Focus on the concept of marginal propensity to consume and reflect on which of the following would be implied by a highmarginal propensity to consume.
O A small change in consumption when income changes
O A high saving rate
O A high marginal tax rate
O An equilibrium level of income near full employment
O A low marginal propensity to save
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