Suppose that when disposable income increases by $2,000, consumption spending increases by $1,800. Given this information, we know that the marginal propensity to consume (MPS) is
A) 0.1.
B) 0.2.
C) 0.8.
D) 0.9.

Question

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The Answer of Suppose that when disposable income increases by $2,000, consumption spending increases by $1,800. Given this information, we know that the marginal propensity to consume (MPS) is
A) 0.1.
B) 0.2.
C) 0.8.
D) 0.9.

Suppose That When Disposable Income Increases by $2,000, Consumption Spending