Question 1
If Logan received a $2,500 bonus and his
MPS is 0.20, his consumption rises by $________ and his saving rises by $________.
◦ 500; 100
◦ 2,500; 200
◦ 2,000; 500
◦ 2,500; 20
Question 2
Uncertainty about the future is likely to
◦ increase current spending.
◦ have no impact on current spending.
◦ decrease current spending.
◦ either increase or decrease current spending.