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Shalnov [3]
3 years ago
10

1a. Suppose that, if their income rises by $100, all households in Normalia raise their spending by $80.

Business
1 answer:
Mila [183]3 years ago
4 0

Answer:

0.2

0.8

40

2

2000

Explanation:

Marginal propensity to consume is the proportion of disposable income that is spent on consumption

Marginal propensity to consume = amount consumed / disposable income

Marginal propensity to save is the proportion of disposable income that is saved

Marginal propensity to save = amount saved / disposable income

MPC + MPS = 1

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