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.

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Definitions:

Probability Distribution

A mathematical function that describes the likelihood of obtaining the possible values that a random variable can assume.

Daily Demand

The total quantity of a product or service required by the market within one day.

Computers

Electronic devices that can store, retrieve, and process data, performing calculations and operations according to a set of instructions known as programs.

Probability Distribution

A mathematical description of outcomes in a probabilistic experiment with respect to their probabilities.