Q.1.9 If a household’s income falls from R12 000 to R10 000, and its consumption falls from R9 500 to R8 000, then: (2) (1) The marginal propensity to consume is ‐0.8. (2) The marginal propensity to consume is 0.75. (3) The marginal propensity to consume is 0.2. (4) The marginal propensity to save is 0.15.

Q.1.9 If a household’s income falls from R12 000 to R10 000, and its consumption falls from R9 500 to R8 000, then: (2) (1) The marginal propensity to consume is ‐0.8. (2) The marginal propensity to consume is 0.75. (3) The marginal propensity to consume is 0.2. (4) The marginal propensity to save is 0.15.

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Description: Q.1.9 If a household’s income falls from R12 000 to R10 000, and its consumption fallsfrom R9 500 to R8 000, then:(2)(1) The marginal propensity to consume is ‐0.8. (2) The marginal propensity to consume is 0.75. (3) The marginal propensity to consum

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter18: The Keynesian Model

Section: Chapter Questions

Problem 7SQ

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If a household’s income falls from R12 000 to R10 000, and its consumption fallsfrom R9 500 to R8 000, then: choose the correct answer(a) The marginal propensity to consume is ‐0.8. (b) The marginal propensity to consume is 0.75. (c) The marginal propensity to consume is 0.2. (d) The marginal propensity to save is 0.15
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