The Smith Family's Disposable Income Rose from $40 000 Per

Multiple Choice

The Smith family's disposable income rose from $40 000 per year to $42 000 and their desired consumption expenditure rose from $38 000 to $39 600.It can be concluded that their

A) average propensity to consume is 0.8.
B) average propensity to save is 0.8.
C) marginal propensity to consume is $800.
D) marginal propensity to consume is 0.8.
E) marginal propensity to save is 0.8.