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Consider this example: If the marginal propensity to consume is 0.9 and disposable income increases by $0.5 trillion, by how much will consumption expenditure change?

Consider this example: If the marginal propensity to consume is 0.9 and disposable income increases by $0.5 trillion, by how much will consumption expenditure change?

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consumption expenditure will decrease by $1.8 trillion

consumption expenditure will increase by $0.45 trillion

consumption expenditure will decrease by $0.45 trillion

consumption expenditure will increase by $1.8 trillion

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