If the Marginal Propensity to Save Is 0

question 227

Multiple Choice

If the marginal propensity to save is 0.25,then a $10,000 decrease in disposable income will

• A)increase consumption by $7,500.
• B)increase consumption by $2,500.
• C)decrease consumption by $7,500.
• D)decrease consumption by $2,500.

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Definitions:

Poorer

Having less wealth, income, or material possessions compared to others or a previous state.

Long Marriage

A marital union that has lasted for a significant number of years, demonstrating durability and commitment between partners.

Disagree

To have a different opinion or to not hold the same views.

Social Circle

A group of friends or acquaintances with whom a person regularly interacts.