If income rises from $10,000 to $20,000 and savings increases from $9,000 to $16,000, then the marginal propensity to save is
A) 0.10.
B) 0.30.
C) 0.70.
D) 0.80.

Name: If income rises from $10,000 to $20,000 and savings increases from $9,000 to $16,000, then the marginal propensity to save is A) 0.10. B) 0.30. C) 0.70. D) 0.80.
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Quizplus · Accepted Answer

Marginal propensity to save (MPS) = Change in savings / Change in income = (16,000 - 9,000) / (20,000 - 10,000) = 7,000 / 10,000 = 0.70

If Income Rises from $10,000 to $20,000 and Savings Increases