If the marginal propensity to consume is 0.75, net taxes are fixed at $2,000, and real income rises by $12,000, by how much will real consumption spending increase? a. $12,000 b. $7,500 c. $9,000 d. $7,000 e. $8,000
If the marginal propensity to consume is 0.75, net taxes are fixed at $2,000, and real income rises by $12,000, by how much will real consumption spending increase? a. $12,000 b. $7,500 c. $9,000 d. $7,000 e. $8,000
Chapter9: Aggregate Expenditures
Section: Chapter Questions
Problem 10E
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Question
If the marginal propensity to consume is 0.75, net taxes are fixed at $2,000, and real income rises by $12,000, by how much will real consumption spending increase?
a. |
$12,000 |
|
b. |
$7,500 |
|
c. |
$9,000 |
|
d. |
$7,000 |
|
e. |
$8,000 |
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