In a simple, closed economy (no government or foreign sector), if income increases by $1,000, and consumption increases by $600, the marginal propensity to consume is:
A)$600.
B)$600
C)$400
D)$400.
E)$1.67.
F)$1.67
G)$0.60.
H)$0.60

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The Answer of In a simple, closed economy (no government or foreign sector), if income increases by $1,000, and consumption increases by $600, the marginal propensity to consume is:
A)$600.
B)$600
C)$400
D)$400.
E)$1.67.
F)$1.67
G)$0.60.
H)$0.60

In a Simple, Closed Economy (No Government or Foreign Sector)