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If a Family's Annual Disposable Income Rose from $60 000

Question 87

Multiple Choice

If a family's annual disposable income rose from $60 000 to $65 000 and their desired consumption expenditures rose from $50 000 to $54 000, it can be concluded that the family's


A) marginal propensity to consume is $800.
B) marginal propensity to save is 0.8.
C) average propensity to consume is 0.8.
D) marginal propensity to consume is 0.8.
E) average propensity to save is 0.8.

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