If the marginal propensity to consume equals 0.75, then a $100 increase in disposable income leads to a ________ increase in consumption.

A. $13.33
B. $75
C. $25
D. $133


Answer: B

Economics

You might also like to view...

What are some of the common arguments against free trade?

What will be an ideal response?

Economics

How does a tax on labor income influence the equilibrium quantity of employment?

What will be an ideal response?

Economics

What is Spain's domestic exchange equation?

Economics

The market interest rate

a. typically increases from one year to the next b. represents the demand for investment c. represents the opportunity cost of funds d. represents the supply of loanable funds e. is not affected by the demand for investment

Economics