Last Year,Linus Earned a Salary of $25,000 and He Spent

Multiple Choice

Last year,Linus earned a salary of $25,000 and he spent $24,000,thus saving $1000.At the end of the year,he received a bonus of $1000 and he spent $500 of it,saving the other $500.What was his marginal propensity to consume?

A) 0.96
B) 0.50
C) 0.04
D) 0.02