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Suppose Erika has a marginal propensity to consume out of a rise in temporary income equal to 0.2 and a marginal propensity to consume out
Suppose Erika has a marginal propensity to consume out of a rise in temporary income equal to 0.2 and a marginal propensity to consume out of a rise in permanent income equal to 0.8. If Erika has a salaried job as a restaurant manager making $75,000 a year and wins the lottery in February for the amount of $3,000, how much will she consume in the month of February? $60,600 $5,600 $9,250 $2,400
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