Suppose disposable income increases by 2000 as a result, Ask an Expert

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Suppose disposable income increases by $2,000. As a result, consumption increases by $1,500. Answer the following questions based on this information. Where appropriate, enter your answer as a decimal rather than as a percentage. The increase in savings resulting directly from this change in income is: 500$ The marginal propensity to save (MPS) is: 0.25

What is the marginal propensity to consume?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91826699

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