If the marginal propensity to consume for a nation is 0.8, it means:
A) consumers save 80% of their incomes.
B) consumers spend 80% of their incomes.
C) consumers pay 20% tax on their earnings.
D) consumers decrease their spending by $0.80 for each $1 of a decrease in their income.

Question

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The Answer of If the marginal propensity to consume for a nation is 0.8, it means:
A) consumers save 80% of their incomes.
B) consumers spend 80% of their incomes.
C) consumers pay 20% tax on their earnings.
D) consumers decrease their spending by $0.80 for each $1 of a decrease in their income.

If the Marginal Propensity to Consume for a Nation Is