Suppose That When Disposable Income Rises from $5

question 133

Multiple Choice

Suppose that when disposable income rises from $5.2 trillion to $6.0 trillion,consumption rises from $5.0 trillion to $5.6 trillion.What is the marginal propensity to save?

• A)0.25
• B)0.33
• C)0.75
• D)0.67
• E)0.07

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Definitions:

Tasteless

Lacking flavor or not having any taste, often used to describe food or substances without a discernible taste.

Odorless

Lacking a detectable smell.

Liquid

A substance that flows freely but is of constant volume, having a consistency like that of water or oil.

Metabolism

The chemical processes that occur within a living organism in order to maintain life, involving anabolic and catabolic reactions.