The average propensity to consume is the
A) fraction of an extra dollar of GDP that becomes disposable income.
B) share of GDP spent by households and businesses.
C) proportion of an extra dollar of disposable income that is spent on consumption.
D) percentage of disposable income that is consumed.
E) reciprocal of the marginal propensity to consume.
Correct Answer:
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Q1: If disposable income rises by $100 billion
Q2: If a family's disposable income is $100,000
Q4: The saving function assumes that personal saving
Q5: The slope of the consumption function is
Q6: If disposable income rises by $100 billion
Q7: The consumption function expresses the relationship between
Q8: If Carolyn's consumption rises by $5,000 as
Q9: The relationship between household spending and disposable
Q10: The additional amount a family spends on
Q11: If disposable income rises by $100 billion
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