Multiple Choice
If the marginal propensity to consume is 0.25, it would mean that:
A) $0.25 of an additional $1 of individuals' after-tax income is spent on consumption.
B) $0.25 of an additional $1 of individuals' after-tax income is saved.
C) $0.75 of an additional $1 of individuals' after-tax income is spent on consumption.
D) None of these are true.
Correct Answer:
Verified
Correct Answer:
Verified
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