If disposable income increases by $100 and consumption increased by $85, ceteris paribus, we may conclude that

A) the marginal propensity to consume is 0.85.
B) the marginal propensity to consume is 0.15.
C) $15 is autonomous consumption.
D) a change in disposable income is induced by a change in consumption.

A

Economics

You might also like to view...

Expansionary fiscal policy definitely raises the exchange rate.

Answer the following statement true (T) or false (F)

Economics

From 1998 to 2010, the cost of electricity produced with nuclear power has ________ and the cost of electricity produced with solar power has ________.

A. increased; increased B. increased; decreased C. decreased; increased D. decreased; decreased

Economics