The question below is based on the following information for a society: Disposable Income Consumption Expenditures $1,900 billion $2,000 billion $2,100 billion $1,615 billion $1,700 billion $1,911 billion -
If disposable income is $2,000 billion, the average propensity to consume Is: .
a. 0.80.
b. 0.85.
c. 0.90.
d. 0.95.
e. 0.75.
If disposable income rises by $100 billion and personal consumption expenditures rises by $60 billion, what is the marginal propensity to save?
a. 0.20.
b. 0.30.
c. 0.40.
d. 0.50.
e. 0.60.