If a household's income falls from $20,000 to $17,000 and its consumption spending falls from $18,000 to $15,000, then its:
a. marginal propensity to consume is ?0.67.
b. marginal propensity to consume is 0.88.
c. marginal propensity to consume is 0.20.
d. marginal propensity to save is 0
e. marginal propensity to save is 0.12.
d
Economics
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