Solved

Suppose When Disposable Personal Income Increases from $10,000 to $15,000

Question 208

Multiple Choice

Suppose when disposable personal income increases from $10,000 to $15,000, consumption increases from $9,000 to $12,000. What is the marginal propensity to save?


A) 0.2
B) 0.4
C) 0.6
D) 0.8

Correct Answer:

verifed

Verified

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

Related Questions

Q203: In the simple aggregate expenditure model where

Q204: Use the following to answer questions .<br>Exhibit:

Q205: Use the following to answer questions .<br>Exhibit:

Q206: Use the following to answer questions .<br>Exhibit:

Q207: Aggregate expenditures that vary with real GDP

Q209: The consumption function shows the negative relationship

Q210: Use the following to answer questions .<br>Exhibit:

Q211: Use the following to answer questions .<br>Exhibit:

Q212: Disposable personal income is the total income

Q213: In the simple aggregate expenditure model where