The marginal propensity to save out of a permanent change in income is approximately:
A)1
B)0.5
C)0
D)none of the above.

Name: The marginal propensity to save out of a permanent change in income is approximately: A)1 B)0.5 C)0 D)none of the above.
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The marginal propensity to save out of a permanent change in income is approximately 0 because individuals tend to adjust their consumption to match their new permanent income level, leaving little to save.

The Marginal Propensity to Save Out of a Permanent Change