If a household's income falls from $26,000 to $24,000 and its consumption spending falls from $25,000 to $23,500,then its
A) marginal propensity to consume is 0.98
B) marginal propensity to consume is 1.33
C) marginal propensity to consume is 0.94
D) marginal propensity to save is 0.02
E) marginal propensity to save is 0.25
Correct Answer:
Verified
Q2: As disposable income increases,_.
A)consumption and saving both
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
Q21: If a household's income falls from $20,000
Q22: Suppose that when disposable income rises from
Q24: A simple statement of the consumption behavior
Q26: Induced saving
A)is that part of saving that
Q27: The MPC is a relationship between
A)a change
Q28: The marginal propensity to save is the
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