Consumption spending rises

Assignment Help Business Economics

Reference no: EM13896697

If a household`s income rises from $46,000 to $46,700 and its consumption spending rises from $35,800 to $36,400, then its

A. marginal propensity to consume is 0.86

B. marginal propensity to consume is 0.99

C. marginal propensity to consume is 0.98

D. marginal propensity to save is 0.01

E. marginal propensity to save is 0.86

Reference no: EM13896697

Questions Cloud

Using demand–supply diagrams in labour market : Using demand–supply diagrams in the labour market, show what it means that there is a minimum wage but it is not “binding”. Should we have unemployment if it is not binding?

Describing main theme of sir gawain and the green knight : The primary theme of a literary work is built into many different facets of its composition. Draft a phrase describing a main theme of Sir Gawain and the Green Knight.

Using demand–supply diagrams in the labour market : Using demand–supply diagrams in the labour market show what it means that the market “clears”. Label the axes carefully.

Relationship between economy production possibilities curve : What is the relationship between an economy’s production possibilities curve and its long-run aggregate supply curve? Check all that apply.

Consumption spending rises : If a household`s income rises from $46,000 to $46,700 and its consumption spending rises from $35,800 to $36,400, then

The consumption function assumes : The consumption function assumes that

Determine the cost of each strategy : Rowley Apparel, manufacturer of the famous "Race-A-Rama" swimwear line, needs help planning production for next year. Demand for swimwear follows a seasonal pattern, as shown here. Determine the cost of each strategy

What is true of disposable income : What is true of disposable income?

How many copying machines should be rented to minimize cost : The manager of a large group of employees must decide if she needs another copying machine. The cost of a machine is $275 per 8-hour day whether or not the machine is in use. An average of 16.5 people per hour need to use the copying machine. Each pe..

User Account

All Pages