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    Exam 11: Consumption, Real GDP, and the Multiplier
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    If Your Real Disposable Income Goes Up by $1,000 Per
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If Your Real Disposable Income Goes Up by $1,000 Per

Question 48

Question 48

Multiple Choice

If your real disposable income goes up by $1,000 per week, and your real consumption spending goes up by $800 per week, you have a marginal propensity to consume of


A) 0.2.
B) 0.8.
C) 1.2.
D) 1.0.

Correct Answer:

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