Multiple Choice
A consumption function of the form C = Co + cYD has a positive vertical intercept Co, which indicates that
A) some consumption is unaffected by changes in disposable income
B) the mpc will increase as disposable income increases
C) the apc will always increase as disposable income increases
D) the apc will always be less than the mpc
E) all of the above
Correct Answer:
Verified
Correct Answer:
Verified
Q40: The expenditure multiplier measures<br>A)the number of steps
Q41: A decrease in the income tax rate
Q42: When calculating the multiplier for government purchases
Q43: Which of the following will NOT happen
Q44: Assume an economy with no foreign sector,
Q45: A decrease in the income tax rate
Q46: The full-employment budget surplus increases if<br>A)government transfer
Q48: Assume a model with income taxes in
Q49: In a simple model with no government
Q50: An increase in government spending will<br>A)not affect