If your income increases from $30,000 to $40,000 and your savings increases from $2,000 to $4,000 . your marginal propensity to save (MPS) is:

a. 0.2.
b. 0.4.
c. 0.5.
d. 0.8.
e. 1.0.

a

Economics

You might also like to view...

Price floors are used as a method to:

a. ensure buyers that goods won't be cheaper tomorrow. b. see that production levels don't fall too low. c. guarantee there will be enough food for everyone. d. combat excess demand in the market. e. ensure sellers a minimum price for their goods.

Economics

Fixed cost will decrease with increases in output

Indicate whether the statement is true or false

Economics