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 0.25
d. marginal propensity to save is 0.02
e. marginal propensity to save is 0.25
e
Economics
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The most common form of business organization in the United States is the sole proprietorship
a. True b. False
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When we assume that investment is autonomous we imply that:
a. it is a fixed constant amount. b. it is independent of current real GDP. c. it is a positive function of interest rates. d. it is actually zero. e. it has no impact on consumption.
Economics