Use the Information Below to Answer the Following Questions

question 158

Multiple Choice

Use the information below to answer the following questions.
Fact 27.1.1
In an economy, when disposable income increases from $400 billion to $500 billion, consumption expenditure increases from $480 billion to $540 billion.
-Consider Fact 27.1.1. The marginal propensity to save is

• A)0.75.
• B)0.80.
• C)0.60.
• D)0.40.
• E)0.25.