When Disposable Income Equals $800 Billion, Planned Consumption Expenditure Equals

question 280

Multiple Choice

When disposable income equals $800 billion, planned consumption expenditure equals $600 billion, and when disposable income equals $1,000 billion, planned consumption expenditure equals $760 billion. What is the marginal propensity to save?

• A) 0.64
• B) 0.20
• C) 0.80
• D) 0.25

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Definitions:

Spread

The process of extending, dispersing, or proliferating from one area to another, often used in the context of diseases, information, or species distribution.

Water Table

The upper level of an underground surface in which the soil or rocks are permanently saturated with water.

Infiltration

The process by which water on the ground surface enters the soil, often influencing groundwater recharge and soil moisture.

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