Multiple Choice
Linda earned an income of $3,000 per month, which has now increased to $3,500 per month. She saves 10 percent and spends the remainder on food, lodging and other expenses. So far, she has managed to save $20,000. What is her marginal propensity to save (MPS) ?
A) Her marginal propensity to save is 0.99.
B) Her marginal propensity to save is 0.90.
C) Her marginal propensity to save is 0.86.
D) Her marginal propensity to save is 0.10.
E) Her marginal propensity to save is 0.01.
Correct Answer:
Verified
Correct Answer:
Verified
Q39: In the income-expenditure framework,if planned aggregate expenditures
Q45: If consumption is greater than income,saving must
Q62: A decrease in disposable income will:<br>A)shift the
Q69: What was a result of China's "one-child
Q70: Which of the following will shift the
Q72: If the marginal propensity to consume (MPC)
Q73: Table 9.1<br> <span class="ql-formula" data-value="\begin{array}{l}\text
Q78: If the market interest rate decreases, then
Q79: When the current production of goods and
Q84: If income increases by $100 and saving