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Is this statement true or false If the marginal propensity to consume in a consumption function decreases then the autonomous consumption multiplier increases?
Rulinda
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Goods are rival in consumption if?
Consumption of a good by one person decreases consumption by another person.
If a good is a normal good what will happen to its consumption as income increases?
The definition of a Normal Good is: a good that will increase in consumption as income increases and decrease in consumption as income decreases.
What does a marginal utillity curve shows?
It shows how much utility you would get for each unit of consumption. It has a positive slope that decreases as the unit of consumption increases due to the law of diminishing returns.
How does consumer income affect the demand for normal goods?
A good that decreases in demand when consumer income rises; having a negative Income increases will thus affect the consumption of these goods.
What is provision of information and can you name an advantage and a disadvantage of this?
Provision of Information is when the government provides information to the consumer in order for them to recognise the true costs/benefits to themselves. Advantage: Reduces over-consumption/decreases over-consumption Disadvantage: Information only informs consumers, does not enforce like taxation.
What happens to the credit multiplier when the cash reserve ratio is increased?
The credit multiplier decreases.
Why tax multiplier is negative.show graphically the negative impact of tax multiplier on income?
tax multiplier is negative because when government imposes tax, the income decreases
Goods are rival in consumption if?
Consumption of a good by one person decreases consumption by another person.
What happened when recycle?
The materials are reused in other products and consumption decreases.
If a good is a normal good what will happen to its consumption as income increases?
The definition of a Normal Good is: a good that will increase in consumption as income increases and decrease in consumption as income decreases.
If speed of fan is increased is energy consumption increases or decreases?
Energy consumption increases due to the increased air mass flow brought about by higher fan speed.
Effect of respiratory rate on crying and age?
As the age increases the metabolic activities decreases therefore the cellular respiration also decreases. The body need little amount of oxygen for the consumption so as the age increase the respiration rate decreases.
What does a marginal utillity curve shows?
It shows how much utility you would get for each unit of consumption. It has a positive slope that decreases as the unit of consumption increases due to the law of diminishing returns.
Why does Physical endurance drop for smokers?
Because they fill their lungs with burn products of tobacco and the surface area for air consumption decreases.
Suppose that a scientist is simultaneously measuring both the amount of oxygen and the amount of glucose that is being used by cells. If a chemical were added that inhibited the electron transport chain?
Oxygen consumption decreases while glucose consumption increases
How does consumer income affect the demand for normal goods?
A good that decreases in demand when consumer income rises; having a negative Income increases will thus affect the consumption of these goods.
Why income can influence the consumption?
Although the formation of the question is a bit odd,here's the answer. Income in general has a direct impact on consumption. The greater the amount of income the greater the amount of consumption; simply stated as one's income increase he/she spends more of it on many different products or services. Conversely, as the quantity of income decreases,so does consumption. In this case of decreased income the discretionary money is spent mostly on necessities and basic foods,etc.
