Becky Graduated with a Master's Degree in Personal Financial Planning

Multiple Choice

Becky graduated with a master's degree in personal financial planning. After working for 2 years in a small financial planning firm, Becky earns $85,000 annually and saves $5,000 a year after spending on her current needs. What is her average propensity to consume?

A) 5 percent
B) 25 percent
C) 60 percent
D) 88 percent
E) 94 percent