if-a-persons-disposable-income-decreases-by-200-and-their-marginal-propensity-to

Question

If a person's disposable income decreases by $200 and their marginal propensity to consume (MPC) is 0.8, how much will their savings decrease?

Accepted Answer

$40

Answer

$160

Answer

$0

Answer

$200

If a person's disposable income decreases by \$200 and their marginal propensity to consume (MPC) is 0.8, how much will their savings decrease?