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If a Household's Income Falls from $26,000 to $24,000 and Its

Question 40

Multiple Choice

If a household's income falls from $26,000 to $24,000 and its saving falls from $1,000 to $500,then its


A) marginal propensity to consume is 0.98
B) marginal propensity to consume is 1.33
C) marginal propensity to consume is 0.75
D) marginal propensity to save is 0.02
E) marginal propensity to save is 0.4

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