If a household's income falls from $26,000 to $24,000 and its saving falls from $1,000 to $500, then its _____
a. marginal propensity to consume is 0.98
b. marginal propensity to consume is 1.33
c. marginal propensity to consume is 0.25
d. marginal propensity to save is 0.02
e. marginal propensity to save is 0.25
e
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a. True b. False Indicate whether the statement is true or false
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Answer the following statement true (T) or false (F)