Q 73

When Tom's income is $20,000, he spends $18,000 and when his income increases to $30,000, he spends $23,000. His MPC is
A) 0.3.
B) 0.5.
C) 0.65.
D) 0.77.
E) 0.90.

Q 74

If two successive levels of disposable personal income are $160 and $190 billion, respectively, and if the change in consumption spending is $20 billion between these two levels of disposable personal income, then the MPC will equal
A) .50.
B) .67.
C) .80.
D) .20.
E) 1.50.

Q 75

If the marginal propensity to consume declines, then
A) for any given change in income, there will be a smaller change in saving.
B) nothing will happen to the consumption function.
C) for any given change in income, there will be a larger change in consumption.
D) for any given change in consumption, there will be a smaller change in income.
E) for any given change in income, there will be a smaller change in consumption.