The fact that marginal propensity to consume (MPC) is larger than 0 means that a. Consumption will decrease following a decrease in current income b. Consumption will increase following a decrease current income c. Consumption will increase following a decrease in future income s. Consumption will decrease following as increase in current income
The fact that marginal propensity to consume (MPC) is larger than 0 means that a. Consumption will decrease following a decrease in current income b. Consumption will increase following a decrease current income c. Consumption will increase following a decrease in future income s. Consumption will decrease following as increase in current income
Chapter8: The Keynesian Model
Section: Chapter Questions
Problem 6SQ
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The fact that marginal propensity to consume (MPC) is larger than 0 means that
a. Consumption will decrease following a decrease in current income
b. Consumption will increase following a decrease current income
c. Consumption will increase following a decrease in future income
s. Consumption will decrease following as increase in current income
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