If the Marginal Propensity to Consume = 0

question 51

Multiple Choice

If the marginal propensity to consume = 0.75, then:

• A)the marginal propensity to save = 0.75.
• B)the marginal propensity to save = 1.33.
• C)the marginal propensity to save = 0.20.
• D)the marginal propensity to save = 0.25.
• E)since the marginal propensity to save and the marginal propensity to consume are unrelated, we cannot determine the marginal propensity to save from the information given.

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