Author Question: Which of the following occurs when disposable income is zero? A) consumption must be zero B) ... (Read 48 times)

jerry coleman · **on:** Jun 30, 2018

Which of the following occurs when disposable income is zero?

A) consumption must be zero
B) saving must be zero
C) saving must be positive
D) consumption is negative
E) none of the above

Question 2

Suppose the consumption equation is represented by the following: C = 250 + .75YD. Given this information, the marginal propensity to save is

A) .25.
B) .7.
C) 1.
D) 4.
E) none of the above