If Income Rises from $1,000 to $1,400 and Consumption Rises

question 30

Multiple Choice

If income rises from $1,000 to $1,400 and consumption rises from $1,100 to $1,440,the marginal propensity to save (MPS) is

• A)0.15.
• B)0.85.
• C)0.25.
• D)0.20.

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Definitions:

Data Repository

A data repository is a central location in which data is stored and managed, typically used to aggregate, organize, and make data accessible for analysis and reporting.

Sensitivity Analysis

A method used to determine how different values of an independent variable affect a particular dependent variable under a given set of assumptions.

"What If"

A speculative question or scenario analysis technique used in planning and decision-making to explore potential outcomes.

Buying Behavior

The decision-making process and actions of consumers that precede the purchase of goods or services.