Multiple Choice
The Smith family's disposable income rose from $40 000 per year to $42 000 and their desired consumption expenditure rose from $38 000 to $39 600. It can be concluded that their
A) marginal propensity to save is 0.8.
B) marginal propensity to consume is $800.
C) average propensity to consume is 0.8.
D) marginal propensity to consume is 0.8.
E) average propensity to save is 0.8.
Correct Answer:
Verified
Correct Answer:
Verified
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