AP Macroeconomics · Past multiple choice · Question 5, older AP Economics course description · Four-function calculator
What an MPC of 0.8 implies
Taxes are a fixed sum, there is no foreign trade, and households spend 80 cents of each extra dollar of income. Pick the statement about spending, saving and income that must be true.
The lesson this question tests
1 Read the question
The question is College Board's: sample question 5 in AP Economics Course Description. It starts on page 33 of the PDF. College Board no longer posts this edition, so it opens from the copy the Internet Archive saved on June 3, 2016. A four-function calculator is allowed, as on the exam.
Open Question 5 (PDF, page 33)
2 Pick your answer
Question and answer key: College Board, from the Internet Archive. The title and summary are ours.