Question

Real Disposable Income per YearPlanned Real Consumption per Year
$0$1,000
1,0001,800
2,0002,600
3,0003,400
4,0004,200
5,0005,000
6,0005,800
7,0006,600
8,0007,400
9,0008,200
10,0009,000

In the above table, the marginal propensity to save when disposable income changes from $1,000 to $2,000 is

A) 0.1.

B) 0.2.

C) 0.8.

D) -0.2.

Answer

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