Use the Information Below to Answer the Following Questions

question 35

Multiple Choice

Use the information below to answer the following questions.
Fact 11.1.1
In an economy, when disposable income increases from $400 billion to $500 billion, consumption expenditure increases from billion to $540 billion.
-Consider Fact 11.1.1.The marginal propensity to save is

• A)0.75.
• B)0.60.
• C)0.80.
• D)0.40.
• E)0.25.