If the Marginal Propensity to Consume for a Nation Is

question 116

Multiple Choice

If the marginal propensity to consume for a nation is 0.8, it means:

• A) consumers save 80% of their incomes.
• B) consumers spend 80% of their incomes.
• C) consumers pay 20% tax on their earnings.
• D) consumers decrease their spending by $0.80 for each $1 of a decrease in their income.

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