Suppose that when disposable income rises from $3 trillion to $3.2 trillion,consumption rises from $2.5 trillion to $2.6 trillion.What is the marginal propensity to save?
A) 0.1
B) 0.2
C) 0.5
D) 0.8
E) 0.9
Correct Answer:
Verified
Q2: As disposable income increases,_.
A)consumption and saving both
Q17: As disposable income increases,consumption spending
A)increases by the
Q18: As disposable income increases,saving decreases.
Q19: Out of disposable income,households
A)consume and save
B)consume and
Q20: Which is true of disposable income?
A)it excludes
Q21: If a household's income falls from $20,000
Q23: If a household's income falls from $26,000
Q24: A simple statement of the consumption behavior
Q26: Induced saving
A)is that part of saving that
Q27: The MPC is a relationship between
A)a change
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