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Consumption and Savings

Quiz by Dakota Robbins

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8 questions
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  • Q1
    What does the term "DI" stand for?
    disposable income
    direct income
    deposited income
    10s
  • Q2
    Which two activities can households do with disposable income?
    consume and save
    spend and consume
    buy and sell
    10s
  • Q3
    The ability for a household to consume is constrained by the amount of disposable income
    True
    False
    10s
  • Q4
    To consume is to not spend money on goods and services
    True
    False
    10s
  • Q5
    MPC stands for
    marginal propensity to calculate
    marginal propensity to create
    marginal propensity to consume
    10s
  • Q6
    The determinants of consumption and saving include all of the following except
    income
    wealth
    household debt
    taxes
    20s
  • Q7
    MPS stands for
    marginal propensity to sell
    marginal propensity to save
    20s
  • Q8
    When households are saving they are
    in debt
    not spending
    consuming
    20s

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