If a Family's Annual Disposable Income Rose from $60 000

question 87

Multiple Choice

If a family's annual disposable income rose from $60 000 to $65 000 and their desired consumption expenditures rose from $50 000 to $54 000, it can be concluded that the family's

• A)marginal propensity to consume is $800.
• B)marginal propensity to save is 0.8.
• C)average propensity to consume is 0.8.
• D)marginal propensity to consume is 0.8.
• E)average propensity to save is 0.8.

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