Alice's disposable income increases by $1 000,and she spends $600 of it.Assuming no taxes,Alice's:
A) marginal propensity to save is 0.4 and she saves $400.
B) MPC is 0.4 and she saves $400.
C) marginal propensity to save is 0.4 and she saves $600.
D) MPC is 0.6 and she consumes $400.
Correct Answer:
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