If Your MPS Is 0.60 That Means That

Multiple Choice

If your MPS is 0.60 that means that:

A) for every dollar increase in your disposable income, consumption will decrease by 60 cents.
B) for every dollar decrease in your disposable income, consumption will increase by 60 cents.
C) for every dollar increase in your disposable income, consumption will increase by 60 cents.
D) for every dollar increase in your disposable income, consumption will remain unchanged.