QUIZ5 - The most important determinant of consumer spending...

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Selected Answer: the level of income. Correct Answer: the level of income. Question 2 2 out of 2 points With an MPS of .4, the MPC will be: Selected Answer: 1.0 minus .4. Correct Answer: 1.0 minus .4. Question 3 0 out of 2 points As disposable income goes up the: Selected Answer: [None Given] Correct Answer: APC falls. Question 4 0 out of 2 points As disposable income increases, consumption: Selected Answer: increases and saving decreases. Correct Answer: and saving both increase. Question 5 0 out of 2 points Suppose a family's consumption exceeds its disposable income. This means that its: Selected Answer: MPS is negative. Correct Answer: APC is greater than 1. Question 6 2 out of 2 points Dissaving means: Selected Answer: that households are spending more than their current incomes. Correct Answer: that households are spending more than their current incomes. Question
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This note was uploaded on 02/10/2011 for the course ECON 202 taught by Professor Kotlove during the Spring '11 term at Edmonds Community College.

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QUIZ5 - The most important determinant of consumer spending...

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