If a Family's Disposable Income Is $100,000 and the Amount

question 54

Multiple Choice

If a family's disposable income is $100,000 and the amount it saves is $35,000,its

• A) average propensity to consume is 0.65.
• B) marginal propensity to save is 0.53.
• C) marginal propensity to consume is 0.65.
• D) marginal plus average propensities to consume equal 1.
• E) average propensity to consume is 1.53.

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