c08asendout-1

c08asendout-1 - 1. The most important determinant of...

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1. The most important determinant of consumption and saving is the: A) level of bank credit. B) level of income. C) interest rate. D) price level. 2. If Carol's disposable income increases from $1,200 to $1,700 and her level of saving increases from minus $100 to a plus $100, her marginal propensity to: A) save is three-fifths. B) consume is one-half. C) consume is three-fifths. D) consume is one-sixth. 3. A decline in disposable income: A) increases consumption by moving upward along a specific consumption schedule. B) decreases consumption because it shifts the consumption schedule downward. C) decreases consumption by moving downward along a specific consumption schedule. D) increases consumption because it shifts the consumption schedule upward. 4. The APC is calculated as: A) change in consumption / change in income. B) consumption / income. C) change in income / change in consumption. D)
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c08asendout-1 - 1. The most important determinant of...

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