If the Marginal Propensity to Consume Is ________, Then a $2

question 160

Multiple Choice

If the marginal propensity to consume is ________, then a $2 trillion increase in disposable income increase consumption expenditure by $1.2 trillion. If the marginal propensity to consume is ________, then a $2 trillion increase in disposable income increases consumption expenditures by $1.6 trillion

• A) 0.6; 0.8
• B) 1.2; 1.6
• C) 1.67; 2.25
• D) 6.0; 8.0
• E) 0.6; 0.8.