If Consumption Expenditures for a Household Increase from $1000 to $1800

question 384

Multiple Choice

If consumption expenditures for a household increase from $1000 to $1800 when disposable income rises from $1000 to $2000, the marginal propensity to consume is

• A) 0.2.
• B) 0.8.
• C) 0.3.
• D) 0.18.

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