If Consumption Increases by $8 When Disposable Income Increases by $10,the

question 31

Multiple Choice

If consumption increases by $8 when disposable income increases by $10,the marginal propensity to consume is equal to

• A) 0.2.
• B) 0.8.
• C) 2.0.
• D) 8.0.
• E) 10.0.