The MPC Can Be Defined as the Fraction of A

question 89

Multiple Choice

The MPC can be defined as the fraction of a:

• A)change in income which is not spent.
• B)change in income which is spent.
• C)given total income which is not consumed.
• D)given total income which is consumed.

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Definitions:

Imports

Goods and services brought into one country from another for sale, which can impact a nation’s economy by influencing the balance of trade.

Exports

The selling of goods and services produced in one country to another country.

Bretton Woods System

A monetary management system that established the rules for commercial and financial relations among major industrial states after World War II, introducing fixed exchange rates and laying the foundation for modern international monetary systems.

Trade Surplus

Occurs when the value of a country's exports exceeds the value of its imports.