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:

Lajos Kossuth

A Hungarian lawyer, journalist, politician, statesman, and key figure in the Hungarian Revolution of 1848 against Austrian rule.

Constitutional Liberalism

is a political philosophy that emphasizes the protection of individual rights and liberties by the limitation of government power through a constitution.

Anarchist Ideas

Political theories and philosophies that advocate for the abolition of centralized state authority, emphasizing freedom, voluntary association, and mutual aid.

German Revolutionaries

Individuals or groups in Germany who advocated for or participated in revolutionary activities, particularly those aimed at achieving political, social, or economic change.