Suppose Saving Is $1,400 When Income Is $10,000 and the MPC

question 193

Multiple Choice

Suppose saving is $1,400 when income is $10,000 and the MPC equals 0.8. When income increases to $12,000, saving is

• A) $1,680.
• B) $1,800.
• C) $2,200.
• D) $3,000.