Which of the following best describes marginal propensity to consume (MPC) and average propensity consume (APC)? O a. O b. O c. MPC is less than or equals 1, but APC can be either greater or less than 1 Both MPC and APC are always less than 1 MPC is less than 1, but APC is always equal to 1 O d. MPC and APC are always greater than or equal to 1 cross c cross c cross c cross a

Which of the following best describes marginal propensity to consume (MPC) and average propensity consume (APC)? O a. O b. O c. MPC is less than or equals 1, but APC can be either greater or less than 1 Both MPC and APC are always less than 1 MPC is less than 1, but APC is always equal to 1 O d. MPC and APC are always greater than or equal to 1 cross c cross c cross c cross a

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter11: Managing Aggregate Demand: Fiscal Policy

Section: Chapter Questions

Problem 2TY

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Question

Which of the following best describes marginal propensity to consume (MPC) and average propensity to
consume (APC)?
O a. MPC is less than or equals 1, but APC can be
either greater or less than 1
Both MPC and APC are always less than 1
MPC is less than 1, but APC is always equal to
1
O b.
O c.
O d. MPC and APC are always greater than or
equal to 1
cross out
cross out
cross out
cross out

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