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If the Marginal Propensity to Consume Is ________, Then a $2

Question 160

Multiple Choice

If the marginal propensity to consume is ________, then a $2 trillion increase in disposable income increase consumption expenditure by $1.2 trillion. If the marginal propensity to consume is ________, then a $2 trillion increase in disposable income increases consumption expenditures by $1.6 trillion


A) 0.6; 0.8
B) 1.2; 1.6
C) 1.67; 2.25
D) 6.0; 8.0
E) 0.6; 0.8.

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