Multiple Choice
If a household's income falls from $26,000 to $24,000 and its saving falls from $1,000 to $500,then its _____.
A) marginal propensity to consume is 0.98
B) marginal propensity to consume is 1.33
C) marginal propensity to consume is 0.25
D) marginal propensity to save is 0.02
E) marginal propensity to save is 0.25
Correct Answer:
Verified
Correct Answer:
Verified
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