A. 0.8
B. 800
C. 810
D. 0.81
Related Mcqs:
- If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 the marginal propensity to consume is what ?
A. 0.8
B. 800
C. 810
D. 0.81 - If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 total consumption is what ?
A. 0.8
B. 800
C. 810
D. 0.81 - Disposable income is the part of households income left after the deduction of ?
A. income tax and social security payments
B. taxes and the addition of benefits
C. income tax
D. contractual payments such as pensions and mortgages - If the marginal propensity to consume on domestic products is 0.9 the size of the multiplier is ?
A. 10
B. 1
C. 9
D. 0.1 - An increase in the marginal propensity to consume will ?
A. increase the size of the multiplier
B. Increase the marginal propensity to save
C. Decrease national income
D. Reduce injections into the economy - The marginal propensity to consume is equal to ?
A. Total spending / total consumption
B. Total consumption / total income
C. change in consumption / change in income
D. Change in consumption / change in savings - The marginal propensity of consume is equal to ?
A. Total spending / total consumption
B. Total consumption / total income
C. Change in consumption / change in income
D. Change in consumption / change in savings - If the marginal propensity of consume MPC is 0.75 the value of the multiplier is ?
A. 4
B. 7.5
C. 5
D. 0.75 - A linear consumption function with a positive slope less than one means that if income increases consumption will ?
A. fall
B. not change
C. fluctuate
D. increase - When you consume good Q, not only do you benefit form consuming the good but other people benefit from your consumption as well, if firms produce good Q where P = MC, firms will be producing ?
A. less than the efficient level of output
B. more than the efficient level of output
C. so that consumer surplus is zero
D. the efficient level of output
