If the Jones Family's Disposable Income Increases from $1200 to $1700

question 131

Multiple Choice

If the Jones family's disposable income increases from $1200 to $1700 and their desired saving increases from -$100 to +$100,then the family's

• A)average propensity to consume is 0.60.
• B)average propensity to consume is 0.40.
• C)marginal propensity to consume is 0.40.
• D)marginal propensity to consume is 0.60.
• E)marginal propensity to save is 1.

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