1.Ron consumes $55 and saves $15 additional dollars as a result of his income in

ID: 1108647 • Letter: 1

Question

1.Ron consumes $55 and saves $15 additional dollars as a result of his income increasing. What approximately is Ron's Marginal Propensity to Consume?

Select one:

a. .65

b. .68

c. .70

d. .75

e. .79

2. Which of the following individuals is using money as a unit of account?

a. Lisa is comparing the prices of different apartments for rent

b. Mike is placing money in a Certificate of Deposit

c. Gellar is purchasing a used car from a car dealer

d. Maida is using money to pay for her college tuition

e. Sarah is paying her accountant a fee for doing her taxes

3. Which of the following statements would be usually true if the federal government were required to balance its budget every year?

a. Government spending would decrease when unemployment rises

b. Government revenue would increase when unemployment rises

c. Government spending would decrease during expansions

d. Government revenue would decrease during expansions

e. None of these answers is correct

Answer.)

Q1.) e. .79

MPC = (55 x 100) / 70 = 78.57% 79%

Q2.) a. Lisa is comparing the prices of different apartments for rent

A basic function of money, providing a unit of measurement for defining, recording, and comparing value.

Q3.) e. None of these answers is correct

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