Refer to Table 23-2.Given the consumption schedule in the table above,the marginal propensity to save is
A) 0.1.
B) 0.4.
C) 0.7.
D) 0.9.

Name: Refer to Table 23-2.Given the consumption schedule in the table above,the marginal propensity to save is A) 0.1. B) 0.4. C) 0.7. D) 0.9.
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Quizplus · Accepted Answer

The marginal propensity to save is the change in saving divided by the change in income. In this case, the change in saving is 10 and the change in income is 25. Therefore, the marginal propensity to save is 10/25 = 0.4.