Suppose that when disposable income increases by $2,000, consumption spending increases by $1,800. Given this information, we know that the marginal propensity to save (MPS) is
A. 0.8.
B. 0.1.
C. 0.9.
D. 0.2.
Answer: B
Economics
You might also like to view...
Discuss the inefficiencies created by a price floor
What will be an ideal response?
Economics
Climate change is a geographical phenomenon; it refers to changes in the distribution of climatic events, such as temperature or the likelihood of tornadoes. Why is it important for economists to study climate change?
What will be an ideal response?
Economics
McDonalds has traditionally been popular among Chinese children
Indicate whether the statement is true or false
Economics
Positive analysis can be described as
A) the study of whether people respond to positive incentives. B) the study of whether people respond to negative incentives. C) a value-free approach to inquiry. D) a study that is not tested empirically.
Economics