Author Question: If a household experiences a 880 increase in consumption with a 1,100 increase in disposable income, ... (Read 117 times)

jhjkgdfhk · **on:** Jun 30, 2018

If a household experiences a 880 increase in consumption with a 1,100 increase in disposable income, what is the slope of that household's saving function?
a. 0.20
b. 2.0
c. 0.80
d. 0.08
e. 0.25

Question 2

When considering whether or not to consume a second slice of cake, an individual is following marginal thinking if she compares the total cost of consuming both the first and second slices with their total benefit before making a decision.
a. True
b. False
Indicate whether the statement is true or false