If your income increases from $30,000 to $40,000 and your savings increases from $2,000 to $4,000, your marginal propensity to save (MPS) is:
A. 0.2.
B. 0.4.
C. 0.5.
D. 0.8.
Answer: A
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Refer to Figure 9.2. A movement from point a to point d could be caused by a simultaneous ________ and ________
A) decrease in taxes; massive crop failure B) increase in government spending; decrease in the price of oil C) increase in taxes; increase in the price of oil D) decrease in the money supply; decrease in government spending
Briefly describe monetarism and the monetary growth rule
What will be an ideal response?
Excess demand occurs:
A. when price is above the equilibrium price. B. when price is below the equilibrium price. C. whenever the market is not in equilibrium. D. whenever the market is in equilibrium.
If the price of Bluetooth headsets rises 12 percent during a year when the level of average prices rises 13 percent, the relative price of Bluetooth headsets
A. Remains constant. B. Decreases. C. Increases. D. More information is required to answer this question.