If Jack received a $1,000 bonus and his marginal propensity to save is 0.15, his consumption rises by _______ and his saving rises by _______ .

Name: If Jack received a $1,000 bonus and his marginal propensity to save is 0.15, his consumption rises by _______ and his saving rises by _______ .
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Question

Quizplus · Accepted Answer

Jack's marginal propensity to save is 0.15, meaning he saves 15% of any additional income. Therefore, he saves $150 (0.15 * $1,000) and consumes the remaining $850 ($1,000 - $150).

If Jack Received a $1,000 Bonus and His Marginal Propensity