Multiple Choice
Exhibit 8-4 Disposable income and consumption data
Note: All amounts are in billions of dollars per year. As shown in Exhibit 8-4 , if disposable income is $500 billion, the marginal propensity to save (MPS) is:
A) 0.00.
B) 0.25.
C) 0.75.
D) 1.00.
Correct Answer:

Verified
Correct Answer:
Verified
Q1: Exhibit 8-11 Consumption function <img src="https://d2lvgg3v3hfg70.cloudfront.net/TBX9027/.jpg" alt="Exhibit
Q2: Exhibit 8-6 Aggregate expenditures function <img src="https://d2lvgg3v3hfg70.cloudfront.net/TBX9027/.jpg"
Q3: Exhibit 8-6 Aggregate expenditures function <img src="https://d2lvgg3v3hfg70.cloudfront.net/TBX9027/.jpg"
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