-In the above figure, the marginal propensity to save equals
A) 0.
B) 0.10.
C) 0.20.
D) 0.90.

Name: -In the above figure, the marginal propensity to save equals A) 0. B) 0.10. C) 0.20. D) 0.90.
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Question

-In the above figure, the marginal propensity to save equals
A) 0. 
B) 0.10. 
C) 0.20. 
D) 0.90.

Quizplus · Accepted Answer

The marginal propensity to save is the change in saving divided by the change in income. In this case, the change in saving is 10 and the change in income is 50, so the marginal propensity to save is 10/50 = 0.10.

-In the Above Figure, the Marginal Propensity to Save Equals