Question
Two multiple choice questions I couldn't get. Part 7: The value of the Average Propensity to Consume (APC) (is): A) higher than 1 below the
Two multiple choice questions I couldn't get.
Part 7: The value of the Average Propensity to Consume (APC) (is):
A) higher than 1 below the break even disposable income, and lower than 1 above the break-even disposable income.
B) higher than 1 below the equilibrium output, and lower than 1 above the equilibrium output
C) not affected by the level of income
D) always less than 1
E) rises and falls as disposable income rises
F) always greater than 1
Part 8: The value of the Marginal Propensity to Consume (MPC) (is):
A) Not affected by the level of income
B) Higher than 1 below the equilibrium output, and lower than 1 above equilibrium output.
C) higher during economic, and lower during economic recessions
D) Depends on the rate at which the economy is growing
E) Rises and falls as disposable income rises.
F) Higher than 1 below he break-even disposable income, and lower than 1 above break-even disposable income.
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