Solved

Suppose That When Disposable Income Increases by $2,000, Consumption Spending

Question 73

Multiple Choice

Suppose that when disposable income increases by $2,000, consumption spending increases by $1,800. Given this information, we know that the marginal propensity to consume (MPS) is


A) 0.1.
B) 0.2.
C) 0.8.
D) 0.9.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q68: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -Use the above

Q69: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -According to the

Q70: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -Use the above

Q71: A lump-sum tax, such as a $1000

Q72: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -Refer to the

Q74: Suppose there is a $20 million increase

Q75: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -In the above

Q76: If the aggregate supply curve is upward

Q77: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -Refer to the

Q78: If saving equals $100 when real disposable