As national income increases. Select one. a. The average propensity to consume increases and diverges in value from the marginal propensity to consume b. The average propensity to consume always approaches infinity c The average propensity to consume falls and gets nearer in value to the marginal propensity to consume d The average propensity to consume stays constantWhich statement is incorrect? Select one. a. The new classical economists criticized the permanent income hypothesis due to its forward- looking expectations b.Expansionary monetary policies make credit more available and reduce liquidity constraints c. Permanent Income hypothesis is consistent with the failure of quarter to quarter movements of consumption due to many transitory income changes to which consumption does ndespond d With a low MPC, a change in tax policy will not cause a large consumption responseWhich statement is incorrect? Select one. a. The new classical economists criticized the permanent income hypothesis due to its forward- looking expectations b.Expansionary monetary policies make credit more available and reduce liquidity constraints c. Permanent Income hypothesis is consistent with the failure of quarter to quarter movements of consumption due to many transitory income changes to which consumption does ndespond d With a low MPC, a change in tax policy will not cause a large consumption responseWhich statement is incorrect in describing the empirical study by Gardner Ackley? Select one. a.22 quarter to quarter data in the early post World War 2 b. Only 7 quarters were consistent with the Keynesian theory! c.5 quarters showed negative relationship between income and consumption d None of the quarter to quarter data showed that MPC is greater thanWhich statement is incorrect in describing the empirical study by Gardner Ackley? Select one. a.22 quarter to quarter data in the early post World War 2 b. Only 7 quarters were consistent with the Keynesian theory! c.5 quarters showed negative relationship between income and consumption d None of the quarter to quarter data showed that MPC is greater thanWhen banks hold more excess reserves per dollar of deposit, this reduces M1. Select one True FalseWhen banks hold more excess reserves per dollar of deposit, this reduces M1. Select one True False