If Consumption Expenditure for a Household Increases from $300 to $500

question 55

Multiple Choice

If consumption expenditure for a household increases from $300 to $500 when disposable income increases from $200 to $500, the marginal propensity to consume is

• A)equal to 1.
• B)negative.
• C)equal to 1.33.
• D)equal to 0.67.
• E)equal to 0.75.