Ask Question
28 November, 15:27

Suppose disposable income increases by $ 2,000. As a result, consumption increases by $ 1,500. Answer the questions based on this information. Where appropriate, enter your answer as a decimal rather than as a percent

+1
Answers (1)
  1. 28 November, 18:26
    0
    Increase in savings resulting directly from the given change in income

    = increase in income - increase in consumption = $2000-$150 = $500

    Marginal propensity to save = increase in savings/increase in income = 500/2000 = 0.25
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Suppose disposable income increases by $ 2,000. As a result, consumption increases by $ 1,500. Answer the questions based on this ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers