If a household's income falls from $20,000 to $17,000 and its consumption spending falls from $18,000 to $15,000,then its:
A)marginal propensity to consume is −0.67.
B)marginal propensity to consume is 0.88.
C)marginal propensity to consume is 0.20.
D)marginal propensity to save is 0.
E)marginal propensity to save is 0.12.

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The Answer of If a household's income falls from $20,000 to $17,000 and its consumption spending falls from $18,000 to $15,000,then its:
A)marginal propensity to consume is −0.67.
B)marginal propensity to consume is 0.88.
C)marginal propensity to consume is 0.20.
D)marginal propensity to save is 0.
E)marginal propensity to save is 0.12.

If a Household's Income Falls from $20,000 to $17,000 and Its