If Disposable Income Increases by $100 and Saving Increased by $25,ceteris

question 67

Multiple Choice

If disposable income increases by $100 and saving increased by $25,ceteris paribus,we may conclude that

• A)the marginal propensity to consume is 0.25.
• B)the marginal propensity to save is 0.25.
• C)$15 is autonomous consumption.
• D)a change in disposable income is induced by a change in consumption.

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