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artcher [175]
3 years ago
11

Household behavior with respect to changes in income can be described by the marginal propensity to consume (MPC) and the margin

al propensity to save (MPS). These variables can be used to predict the eventual changes in equilibrium output after the change in income has occurred. The____________ the larger the resulting change in output for a given change in expenditure.
Business
1 answer:
Citrus2011 [14]3 years ago
5 0

Answer: Greater the MPC

Explanation:

The Marginal Propensity to consume refers to how much Economic consumption increases or decreases due to a change in income.

The formula for MPC is;

= Change in Consumption/Change in Income.

Consumption is a major component of GDP so it has a direct influence on Economic output. In other words, the larger the level of consumption, the higher the higher the output.

As evident from the equation, if the change in consumption is higher than the change in income, the MPC will be larger. A larger MPC therefore corresponds to a higher Consumption.

If a higher Consumption leads to a larger output and a larger MPC corresponds to a higher Consumption then that means that a higher MPC leads to a larger output.

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3 years ago
Which type of employment test cannot be studied for or practiced for in advance?
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4 years ago
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Wewaii [24]
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A high quality leader must be a. task oriented. b. relationship oriented. c. both task and relationship oriented. d, neither tas
Black_prince [1.1K]

Answer:

C. Both task oriented and relationship oriented

Explanation:

A high quality leader must posses those two qualities and many others to be really effective. Both Task oriented and relationship oriented leadership are usually compared because of the varying outcomes the two present. But a leader that has the quality to combine those two methods becomes more effective.

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3 years ago
The profit maximizing behavior of a monopoly is different from that of a perfectly competitive firm in that a monopoly can Quest
Lelechka [254]

Answer:

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