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 zero
E) marginal propensity to save is 0.12
Correct Answer:
Verified
Q2: As disposable income increases,_.
A)consumption and saving both
Q16: Autonomous consumption expenditures are
A)identical to induced consumption
B)determined
Q17: As disposable income increases,consumption spending
A)increases by the
Q18: As disposable income increases,saving decreases.
Q19: Out of disposable income,households
A)consume and save
B)consume and
Q20: Which is true of disposable income?
A)it excludes
Q22: Suppose that when disposable income rises from
Q23: If a household's income falls from $26,000
Q24: A simple statement of the consumption behavior
Q26: Induced saving
A)is that part of saving that
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