Current estimates of the marginal propensity to consume out of wealth are in the neighborhood of ________.
A)three and one-half cents per dollar of wealth
B)45 cents per dollar of wealth
C)98 cents per dollar of wealth
D)$4.87 per dollar of wealth

Question

Quizplus · Accepted Answer

Current estimates of the marginal propensity to consume out of wealth are in the neighborhood of three and one-half cents per dollar of wealth. This means that for every additional dollar of wealth, the average person may consume an additional three and one-half cents.

Current Estimates of the Marginal Propensity to Consume Out of Wealth