Suppose that income increases by 17 units and the marginal propensity to save is 1/4 (i.e. 0.25). Based on our model so far, what is the change in consumption? O+ 3.4 O- 3.4 + 13.6 - 13.6 pone of the answers are correct

Suppose that income increases by 17 units and the marginal propensity to save is 1/4 (i.e. 0.25). Based on our model so far, what is the change in consumption? O+ 3.4 O- 3.4 + 13.6 - 13.6 pone of the answers are correct

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose that income increases by 17 units and the marginal propensity to save is
1/4 (i.e. 0.25). Based on our model so far, what is the change in consumption?
+ 3.4
- 3.4
O+ 13.6
O - 13.6
none of the answers are correct

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