Last Year,Linus Earned a Salary of $25,000 and He Spent

question 65

Multiple Choice

Last year,Linus earned a salary of $25,000 and he spent $24,000,thus saving $1000.At the end of the year,he received a bonus of $1000 and he spent $500 of it,saving the other $500.What was his marginal propensity to consume?

• A)0.96
• B)0.50
• C)0.04
• D)0.02

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