In General,the Marginal Propensity to Spend Is the Change in Total

question 69

Multiple Choice

In general,the marginal propensity to spend is the change in total desired expenditure induced by a change in ________ whereas the marginal propensity to consume is the change in desired consumption expenditure induced by a change in ________.In the case of the simplest macro model with no government and no international trade,however,the marginal propensity to spend is ________ the marginal propensity to consume.

• A)national income; disposable income; greater than
• B)national income; disposable income; equal to
• C)disposable income; national income; equal to
• D)disposable income; national income; greater than
• E)national income; disposable income; smaller than

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Definitions:

Meters

The base unit of length in the International System of Units (SI), equal to approximately 39.37 inches.

Centimeters

A measurement within the metric system that is equivalent to 0.01 meters.

Mass

A measure of the amount of matter in an object, typically measured in kilograms or grams.

Weight

The force exerted on an object due to gravity, typically measured in newtons or pounds.