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Mary earned $250 000 in 2014. She spent 85 percent of her earnings. In 2015, with a new contract, she earned $750 000 per year.
Mary earned $250 000 in 2014. She spent 85 percent of her earnings. In 2015, with a new contract, she earned $750 000 per year. Her consumption increased by $250 000. Which of the following statements about her is NOT accurate? a.Her 2015 marginal propensity to consume is 0.50
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b.Her 2014 average propensity to consume is 0.85
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c.Her average propensity to consume fell between 2014 and 2015
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d.Her marginal propensity to save falls to 0.15 in 2015
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e.None of the above
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