Consider the Aggregate Consumption Function in a Simple Macro Model

question 81

Multiple Choice

Consider the aggregate consumption function in a simple macro model with no taxes. At the level of national income where APC = 1, the nation's households are

• A)saving a portion of their income, but saving is less than consumption.
• B)saving all of their disposable income.
• C)consuming all of their disposable income.
• D)allocating their income equally between saving and consumption.
• E)spending more than their current income.

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Definitions:

Job Rotation

A human resource strategy involving the movement of employees through a range of jobs in order to increase interest, motivation, and skills by exposing them to different experiences.

Cross-pollination

The sharing and combining of knowledge, ideas, or strategies across different fields or disciplines to foster innovation and problem solving.

Money Laundering Legislation

Laws and regulations designed to prevent the process of making large amounts of money generated by a criminal activity appear to be legally obtained.

Performance-support Systems

Tools and resources designed to provide immediate, on-the-job assistance and information to improve employee performance and productivity.