If consumption expenditure for a household increases from $300 to $500 when disposable income increases from $200 to $500, the marginal propensity to consume is
A)equal to 1.
B)equal to 0.75.
C)equal to 1.33.
D)negative.
E)equal to 0.67.

Name: If consumption expenditure for a household increases from $300 to $500 when disposable income increases from $200 to $500, the marginal propensity to consume is A)equal to 1. B)equal to 0.75. C)equal to 1.33. D)negative. E)equal to 0.67.
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Question

Quizplus · Accepted Answer

The Answer is E

If Consumption Expenditure for a Household Increases from $300 to $500