Question 27 When disposable income equals $800 billion, consumption expenditure equals $600 billion and when disposable income equals $1,000 billion, consumption expenditure equals $760 billion. What is the marginal propensity to consume? A 0.25 B 0.20 C 0.64 D) 0.80
Question 27 When disposable income equals $800 billion, consumption expenditure equals $600 billion and when disposable income equals $1,000 billion, consumption expenditure equals $760 billion. What is the marginal propensity to consume? A 0.25 B 0.20 C 0.64 D) 0.80
Chapter10: Kenesian Macroeconomics And Economic Instability: A Critique Of The Self Regulating Economy
Section10.2: The Simple Keynesian Model
Problem 2ST
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Transcribed Image Text:Question 27
When disposable income equals $800 billion,
consumption expenditure equals $600 billion and when
disposable income equals $1,000 billion, consumption
expenditure equals $760 billion. What is the marginal
propensity to consume?
A 0.25
B
C
0.20
0.64
D 0.80
Transcribed Image Text:Question 20
If investment increases by $300 and, in response,
equilibirum real GDP increases by $600, the multiplier is
A 0.5
B 0.2
C 2.0
D
5.0
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