If the Marginal Propensity to Consume Is 0

question 112

Multiple Choice

If the marginal propensity to consume is 0.9, it would mean that:

• A) consumers spend $9 out of every $10 of additional disposable income.
• B) consumers save $9 out of every $10 of additional disposable income.
• C) consumers spend $1 out of every $10 of additional disposable income.
• D) consumers spend $9.90 out of every $10 of additional disposable income.

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