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If the Marginal Propensity to Consume = 0

Question 51

Multiple Choice

If the marginal propensity to consume = 0.75, then:


A) the marginal propensity to save = 0.75.
B) the marginal propensity to save = 1.33.
C) the marginal propensity to save = 0.20.
D) the marginal propensity to save = 0.25.
E) since the marginal propensity to save and the marginal propensity to consume are unrelated, we cannot determine the marginal propensity to save from the information given.

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