Suppose When Disposable Personal Income Increases from $10,000 to $15,000

question 208

Multiple Choice

Suppose when disposable personal income increases from $10,000 to $15,000, consumption increases from $9,000 to $12,000. What is the marginal propensity to save?

• A) 0.2
• B) 0.4
• C) 0.6
• D) 0.8

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Definitions:

Converses

In logic and mathematics, converses refer to statements in which the hypothesis and the conclusion of a conditional statement are swapped.

Contrapositive

In logic, the statement formed by negating both the hypothesis and conclusion of the converse of a conditional statement.

Complements

Elements that complete or go well together, enhancing each other's qualities.

Predicate

The portion of a sentence or proposition that asserts something about the subject, often containing the verb and object.