If the Marginal Propensity to Save Is 0

question 227

Multiple Choice

If the marginal propensity to save is 0.25,then a $10,000 decrease in disposable income will

• A)increase consumption by $7,500.
• B)increase consumption by $2,500.
• C)decrease consumption by $7,500.
• D)decrease consumption by $2,500.

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Definitions:

Horizontal Bars

Apparatus used in gymnastics consisting of a metal bar fixed at a certain height above the ground, enabling athletes to perform exercises.

Chronological Order

A method of arranging events or information in the sequence of their occurrence in time, from the earliest to the latest.

Cropped

Edited or altered by cutting out parts, especially in the context of images or photos, to focus on a particular aspect or to fit a certain size.

Trimmed

The removal of excess parts or edges to improve appearance, function, or efficiency; often used in the context of data, landscaping, or grooming.