If the marginal propensity to save is 0.2, then
A) the marginal propensity to consume is 0.8.
B) the slope of the consumption function is 0.2.
C) the marginal propensity to consume is also 0.2.
D) the slope of the saving function is 0.8.
E) the marginal propensity to consume is larger than 0.8.
Correct Answer:
Verified
Q9: The marginal propensity to consume is calculated
Q10: The marginal propensity to consume is the
A)fraction
Q11: A household
A)consumes, saves, or pays taxes out
Q12: If a household's disposable income increases from
Q13: Use the figure below to answer the
Q15: The marginal propensity to save
A)is greater than
Q16: If consumption is $8,000 when disposable income
Q17: The marginal propensity to consume
A)is greater than
Q18: Use the figure below to answer the
Q19: The sum of the marginal propensity to
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents