Hector's wealth is zero,he expects to work for another 45 years at a constant salary of ?$80 000 and live for another 60 years.If Hector receives an unexpected $20 000 increase in salary his first year of work and he completely smooths consumption over his lifetime,his marginal propensity to consume is
A) 0.6.
B) 0.67.
C) 0.75.
D) 0.8.
Correct Answer:
Verified
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