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Author Question: The Marginal Propensity to Consume and the Marginal Propensity to SaveIf disposable income increases ... (Read 96 times)

desireelg_7

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on: Nov 23, 2022

Question 1

The Marginal Propensity to Consume and the Marginal Propensity to Save

If the marginal propensity to save (MPS) is 0.35, then the marginal propensity to consume (MPC) is ________. (Round to the nearest hundredth.)
◦ 0.65
◦ 1.35
◦ -0.35
◦ -0.65

Question 2

The Marginal Propensity to Consume and the Marginal Propensity to Save

If disposable income increases by $120 million and consumption increases by $75 million, then the marginal propensity to consume (MPC) is ________. (Round to the nearest hundredth.)
◦ 0.02
◦ 0.38
◦ 1.60
◦ 0.63
Macroeconomics ¦ Acemoglu, Laibson, List ¦ 3rd Edition
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Marked as best answer by desireelg_7 on Nov 23, 2022

LynellDool

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Reply #1 on: Nov 23, 2022
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desireelg_7

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Reply 2 on: Nov 23, 2022
YES! Correct, THANKS for helping me on my review

lindahyatt42

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Reply 3 on: Yesterday
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