Solved

Suppose When Disposable Personal Income Increases from $10,000 to $15,000

Question 103

Multiple Choice

Suppose when disposable personal income increases from $10,000 to $15,000, consumption increases from $9,000 to $12,000. What is the marginal propensity to consume?


A) 0.2
B) 0.4
C) 0.6
D) 0.8

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q98: Which of the following statements is true

Q99: The marginal propensity to consume is the

Q100: In a graph with real GDP on

Q101: Use the following to answer questions .<br>Exhibit:

Q102: Planned investment is<br>A) equal to gross private

Q104: Use the following to answer questions .<br>Exhibit:

Q105: Use the following to answer questions .<br>Exhibit:

Q106: In the simple aggregate expenditure model where

Q107: Consider a simple aggregate expenditure model where

Q108: Personal saving equals<br>A) gross domestic income −