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If the Jones Family's Disposable Income Increases from $1200 to $1700

Question 131

Multiple Choice

If the Jones family's disposable income increases from $1200 to $1700 and their desired saving increases from -$100 to +$100,then the family's


A) average propensity to consume is 0.60.
B) average propensity to consume is 0.40.
C) marginal propensity to consume is 0.40.
D) marginal propensity to consume is 0.60.
E) marginal propensity to save is 1.

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