Solved

If the Marginal Propensity to Consume Is 0

Question 112

Multiple Choice

If the marginal propensity to consume is 0.9, it would mean that:


A) consumers spend $9 out of every $10 of additional disposable income.
B) consumers save $9 out of every $10 of additional disposable income.
C) consumers spend $1 out of every $10 of additional disposable income.
D) consumers spend $9.90 out of every $10 of additional disposable income.

Correct Answer:

verifed

Verified

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

Related Questions