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Esteban's annual salary is $80,000, of which he saved $20,000. When he received his bonus of $10,000, he spent $8,000 on home renovations and saved
Esteban's annual salary is $80,000, of which he saved $20,000. When he received his bonus of $10,000, he spent $8,000 on home renovations and saved the remaining $2,000. Which statement is TRUE?
A.) Esteban's average propensity to consume stayed the same.
B.) Esteban's average propensity to consume decreased.
C.) Esteban's average propensity to consume cannot be calculated.
D.) Esteban's average propensity to consume increased.
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