If Carol's disposable income increases from $1,200 to $1,700 and her level of saving increases from minus $100 to a plus $100, her marginal propensity to O save is 3/5. O consume is 1/2. O consume is 3/5. O consume is 2/5
If Carol's disposable income increases from $1,200 to $1,700 and her level of saving increases from minus $100 to a plus $100, her marginal propensity to O save is 3/5. O consume is 1/2. O consume is 3/5. O consume is 2/5
Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?
Section9.A: The Simple Algebra Of Income Determination And The Multiplier
Problem 3TY
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![If Carol's disposable income increases from $1,200 to $1,700 and her level of saving increases from minus $100 to a plus $100, her marginal propensity to
O save is 3/5.
O consume is 1/2.
O consume is 3/5.
O consume is 2/5.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F69e5bd9b-d036-438a-a618-f488ed2d4069%2Fe76ce505-aac0-47d3-b5e6-341dc844fd19%2Fmq8u4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:If Carol's disposable income increases from $1,200 to $1,700 and her level of saving increases from minus $100 to a plus $100, her marginal propensity to
O save is 3/5.
O consume is 1/2.
O consume is 3/5.
O consume is 2/5.
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