Multiple Choice
If an increase in disposable income causes consumption to increase from $4,000 to $10,000 and causes saving to increase from $1,000 to $5,000,then it can be inferred that the MPS equals
A) 0.60.
B) 0.40.
C) 0.05.
D) -0.60.
Correct Answer:
Verified
Correct Answer:
Verified
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