If the Marginal Propensity to Save Is 0

question 41

Multiple Choice

If the marginal propensity to save is 0.4,then a $2 million increase in disposable income will

• A)increase consumption by $5 million.
• B)increase consumption by $1.2 million.
• C)decrease consumption by $5 million.
• D)decrease consumption by $1.2 million.

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Definitions:

Fixed Spatial Points

Specific geographic locations that do not change over time, such as cities, buildings, or other landmarks.

Nodes

Points in a network where lines or pathways intersect or branch, commonly used in logistics and transportation planning.

Storage

The action or method of storing goods or materials for future use, maintaining their quality and safety.

Logistics Systems

The integration of transportation, warehousing, inventory management, and other activities that facilitate the movement of goods from producers to consumers.