A linear consumption function with a positive slope less than one means that if income increases consumption will ?

Related Mcqs:

In a macroeconomic model without foreign trade or a government aggregate demand is the sum of ?

A. personal saving and private investment B. personal saving and personal consumption C. personal consumption and private investment D. None of the above...

If desired spending in the economy exceeds income we would expect ?

A. households to save more B. firms to produce less C. firms to produce more D. the MPC to change...

The index used most often to measure inflation is the?

A. wholesale price index (WPI) B. GDP deflator C. Producer price index (PPI) D. consumer price index...

If the government increases spending and raises taxes by just enough to finance this increase it will ?

A. leave output unchanged B. increase output C. reduce output D. increase the MPC...

For given government spending and taxation the government budget deficit will grow in _________ and decline in __________?

A. booms, booms B. recession, recession C. booms, recessions D. recessions, booms...