According to the Above Table, the Marginal Propensity to Consume

question 448

Multiple Choice

According to the above table, the marginal propensity to consume is
-According to the above table, if real Gross Domestic Product (GDP) equals $30,000, what is the average propensity to consume?

• A) 0.67
• B) 0.75
• C) 0.8
• D) 0.87

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Definitions:

Identity

The characteristics, attributes, or qualities that make a person or thing unique and distinguishable from others.

Nominal GDP

The value of the final goods and services produced in a given year valued at that year’s prices.

Velocity of Money

The speed at which currency is transferred from one deal to another and the frequency of usage of a currency unit within a specific timeframe.

Unemployment

The state of being without a job despite actively looking for work, usually measured as a percentage of the labor force.