Chapter 5: Problem 14
Autonomous consumption expenditures are (LO5) a) equal to induced consumption expenditures b) proportional to disposable income c) not influenced by income d) influenced primarily by the saving function
Chapter 5: Problem 14
Autonomous consumption expenditures are (LO5) a) equal to induced consumption expenditures b) proportional to disposable income c) not influenced by income d) influenced primarily by the saving function
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Get started for freeWhich of the following relations is not correct? (LO1, 2) a) \(\mathrm{MPC}+\mathrm{MPS}=1\) d) \(1-\mathrm{APS}=\mathrm{APC}\) b) \(\mathrm{APC}+\mathrm{APS}=1\) e) \(1-\mathrm{MPC}=\mathrm{MPS}\) c) \(\mathrm{MPS}=\mathrm{MPC}+1\)
Boyd and Dianne Call earn \(\$ 100,000\) a year. They went deeply into debt after paying \(\$ 75,000\) for their daughter Chelsea's wedding and \(\$ 50,000\) for their daughter Kaylynne's sweet sixteen party. Their behavior might best be described by (LO6, 7,8) a) Milton Friedman b) John Maynard Keynes c) Bruce Steinberg d) Thorstein Veblen
The consumption function tells us that, as income rises, consumption \((\mathrm{LO3})\) a) declines b) remains the same c) rises more slowly than income d) rises more quickly than income
The largest component of GDP is (LO3) a) net exports c) consumption b) investment d) government purchases
Which statement is true? (LO1,8) a) Americans save much more of their incomes the they did 20 years ago. b) In 2009, our APC was a little below 1.0. c) Although the U.S. does not have the highest saving rate in the world, Americans save more money than the citizens of every other country. d) Our APS has been negative since the early 1990
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