Suppose When Disposable Personal Income Increases from $10,000 to $15,000

question 208

Multiple Choice

Suppose when disposable personal income increases from $10,000 to $15,000, consumption increases from $9,000 to $12,000. What is the marginal propensity to save?

• A) 0.2
• B) 0.4
• C) 0.6
• D) 0.8

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Definitions:

Lowell

A city in Massachusetts known for its significant role in the American Industrial Revolution, especially in textile manufacturing.

Slater

Samuel Slater, often known as the "Father of the American Industrial Revolution" for introducing British textile manufacturing technology to America.

Presidential Election

The process by which a country selects its head of state, in nations with a presidential system, typically involving a direct or indirect vote by the citizenry.

Electoral Votes

The votes cast by members of the Electoral College, which formally elect the president and vice president of the United States.