Table 13-2 -Refer to Table 13-2. Consider a Simple Economy That Is

question 129

Multiple Choice

Table 13-2

-Refer to Table 13-2. Consider a simple economy that is made up of only two sectors, households and firms, and that all investment is autonomous. Further, disposable personal income = real GDP and the economy is currently producing at its level of potential real GDP. What is the marginal propensity to consume in this economy?

• A) 0.5
• B) 0.6
• C) 0.75
• D) 0.8

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Definitions:

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