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If Your Disposable Personal Income Increases from $30,000 to $40,000

Question 224

Multiple Choice

If your disposable personal income increases from $30,000 to $40,000 and your savings increases from $2,000 to $4,000, your marginal propensity to save (MPS) is:


A) 0.2.
B) 0.4.
C) 0.5.
D) 0.8.
E) 1.0.

Correct Answer:

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