The marginal propensity to consume is Select one: a. never bigger than 1 b. equal to disposable income divided by consumption c. always equal to the marginal propensity to save d. normally assumed to increase as disposable income increases e. all of the above

The marginal propensity to consume is Select one: a. never bigger than 1 b. equal to disposable income divided by consumption c. always equal to the marginal propensity to save d. normally assumed to increase as disposable income increases e. all of the above

Macroeconomics: Principles and Policy (MindTap Course List)

13th Edition

ISBN:9781305280601

Author:William J. Baumol, Alan S. Blinder

Publisher:William J. Baumol, Alan S. Blinder

Chapter8: Aggregate Demand And The Powerful Consumer

Section: Chapter Questions

Problem 8DQ

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Question

The marginal propensity to consume is
Select one:
a. never bigger than 1
b. equal to disposable income divided by
consumption
c. always equal to the marginal propensity to
save
d. normally assumed to increase as disposable
income increases
e. all of the above

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