If an economys marginal propensity to consume was 0.75, which of the following is not true? a.
Question:
If an economy’s marginal propensity to consume was 0.75, which of the following is not true?
a. The consumption function would have a slope of 0.75.
b. The marginal propensity to save would be 0.25.
c. Increases in disposable income would increase consumption spending by three times as much as it would increase saving.
d. Consumption will always equal 75 percent of disposable income.
e. All of the above would be true.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: