Use the Table Below to Answer the Following Questions

question 53

Multiple Choice

Use the table below to answer the following questions.
Table 27.1.1
The following table shows the relationship between consumption
expenditure (C) and disposable income (YD) for a hypothetical economy.

-Refer to Table 27.1.1. The marginal propensity to consume is

• A)increasing as YD increases.
• B)equal to 1 when YD equals $600.
• C)0.75.
• D)0.25.
• E)1.33.

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Definitions:

Balance Of Payments

A record of all economic transactions during a given period between residents of one country and residents of the rest of the world.

Euros

The eurozone's official currency, adopted by 19 out of the 27 countries in the European Union.

Financial Account

A component of the balance of payments that records transactions involving financial assets and liabilities between residents of a country and the rest of the world.

Monetary Policies

Policies undertaken by a nation's central bank to control the money supply and interest rates to achieve macroeconomic goals.