Because the Long-Run Marginal Propensity to Consume Is

question 31

Multiple Choice

Because the long-run marginal propensity to consume is

• A) smaller than the short-run marginal propensity to consume; consumption is more volatile over the business cycle than personal disposable income.
• B) larger than the short-run marginal propensity to consume; consumption is less volatile over the business cycle than personal disposable income.
• C) larger than the short-run marginal propensity to consume; consumption is more volatile over the business cycle than personal disposable income.
• D) smaller than the short-run marginal propensity to consume; consumption is less volatile over the business cycle than personal disposable income.
• E) identical to the short-run marginal propensity to consume.

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