If national income increases by $75 million and consumption increases by $15 million, the marginal propensity to consume is O0.20. O 0.75. O 0.15. O 5. Show Transcribed Text 3 The National Restaurant Association states that the restaurant industry has an economic effect of more than $1.7 trillion annually in the United States, with every dollar spent in restaurants generating an estimated total of $2.05 in spending in the economy. This indicates that the spending multiplier for the restaurant industry is equal to O 1.70. O 1.21. O 4.25. O2.05.

If national income increases by $75 million and consumption increases by $15 million, the marginal propensity to consume is O0.20. O 0.75. O 0.15. O 5. Show Transcribed Text 3 The National Restaurant Association states that the restaurant industry has an economic effect of more than $1.7 trillion annually in the United States, with every dollar spent in restaurants generating an estimated total of $2.05 in spending in the economy. This indicates that the spending multiplier for the restaurant industry is equal to O 1.70. O 1.21. O 4.25. O2.05.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

If national income increases by $75 million and consumption increases by $15 million, the marginal propensity to consume is
O 0.20.
O 0.75.
O 0.15.
O 5.
Show Transcribed Text
SO 1.70.
3
The National Restaurant Association states that the restaurant industry has an economic effect of more than $1.7 trillion annually in the United States, with every
dollar spent in restaurants generating an estimated total of $2.05 in spending in the economy. This indicates that the spending multiplier for the restaurant industry is
equal to
1.21.
4:25.
Ⓒ 2.05.
Ć

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