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  3. Macroeconomics Study Set 18
  4. Quiz 4: Consumption,Saving,and Investment

When a Person Gets an Increase in Current Income,what Is

Question 4
Multiple Choice

When a person gets an increase in current income,what is likely to happen to consumption and saving? A)Consumption increases and saving increases. B)Consumption increases and saving decreases. C)Consumption decreases and saving increases. D)Consumption decreases and saving decreases.

Related questions
Q 5
Last year,Linus earned a salary of $25,000 and he spent $24,000,thus saving $1,000.At the end of the year,he received a bonus of $1,000 and he spent $500 of it,saving the other $500.What was his marginal propensity to consume? A).96 B).50 C).04 D).02
Q 6
The fraction of additional current income that a person consumes in the current period is known as the A)consumption-smoothing motive. B)consumption deficit. C)saving rate. D)marginal propensity to consume.
Q 7
An increase in expected future output while holding today's output constant would A)increase today's desired consumption and increase desired national saving. B)increase today's desired consumption and decrease desired national saving. C)decrease today's desired consumption and increase desired national saving. D)decrease today's desired consumption and decrease desired national saving.
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