Consider the following information for a family. The income for the family is $58,000; if the MPS is 0.25, and the income for the family decreases by $15,000, then the decrease in consumption will be:
A) $3,750.
B) $10,500.
C) $11,250.
D) $1,500.

Question

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The Answer of Consider the following information for a family. The income for the family is $58,000; if the MPS is 0.25, and the income for the family decreases by $15,000, then the decrease in consumption will be:
A) $3,750.
B) $10,500.
C) $11,250.
D) $1,500.

Consider the Following Information for a Family