Solved

If Income Increases from $3,000 Per Month to $3,500 Per

Question 235

Multiple Choice

If income increases from $3,000 per month to $3,500 per month and savings rise from $200 per month to $400 per month, what is the marginal propensity to save?


A) 1.25
B) 0.8
C) 2.5
D) 0.4

Correct Answer:

verifed

Verified

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

Related Questions

Q19: The slope of the consumption function is

Q36: Equilibrium in the Keynesian model requires that

Q46: If the interest rate increases, investment will<br>A)

Q191: What occurs when spending is above the

Q231: (Table) The table shows data on

Q233: Suppose full employment real GDP is $12

Q234: If you believe that your income will

Q236: In the Keynesian framework, increments of spending,

Q237: Decreases in government spending _ equilibrium income,

Q239: Classical economists thought that capital markets worked