What Is the Marginal Propensity to Save in Table 9

question 63

Multiple Choice

$$\begin{array}{l}\begin{array} { | c | c | } \hline \begin{array} { c } \text { Disposable Income } \\\text { (Billions of dollars per year) }\end{array} & \begin{array} { c } \text { Total Consumption } \\\text { (Billions of dollars per year) }\end{array} \\\hline \$ 0 & \$ 50 \\\hline 200 & 210 \\\hline\end{array}\\\text { Table } 9.1\end{array}$$ What is the marginal propensity to save in Table 9.1?

• A)0.05.
• B)0.80.
• C)0.20.
• D)0.24.

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Definitions:

Available Credit

The difference between the maximum amount allowed and the actual amount owed on a credit card.

Credit Line

The maximum amount that a person can owe on a credit card at one time.

Layaway Plan

A purchasing agreement that allows a buyer to pay for goods in installments and receive the goods upon full payment.

APR

APR, or Annual Percentage Rate, represents the yearly interest rate charged on borrowed money, encompassing both the nominal rate and additional costs associated with the loan.