If the marginal propensity to consume is 0.75, a $50 increase in disposable income will lead to a $ increase in consumption and a $ increase in savings. (Enter both responses rounded to two decimal places.)

If the marginal propensity to consume is 0.75, a $50 increase in disposable income will lead to a $ increase in consumption and a $ increase in savings. (Enter both responses rounded to two decimal places.)

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter8: Aggregate Demand And The Powerful Consumer

Section: Chapter Questions

Problem 3DQ

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If the marginal propensity to consume is 0.75, a $50 increase in disposable income will lead to a $ increase in consumption and a $
increase in savings. (Enter
both responses rounded to two decimal places.)

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