Multiple Choice
Robert Tetley's disposable income rose from $40 000 per year to $42 000 and his desired consumption expenditure rose from $38 000 to $39 600. It can be concluded that his
A) marginal propensity to consume decreased.
B) marginal propensity to consume is 0.05.
C) marginal propensity to save is 0.20.
D) average propensity to consume is constant.
E) average propensity to save is always 0.05.
Correct Answer:
Verified
Correct Answer:
Verified
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