If Ben’s MPC is . 80, this means that he will:
A)spend eight-tenths of any increase in his disposable income.
B)spend eight-tenths of any level of disposable income.
C)break even when his disposable income is $8,000.
D)save two-tenths of any level of disposable income.
Answer:A
If Ben’s MPC is . 80, this means that he will:
A)spend eight-tenths of any increase in his disposable income. B)spend eight-tenths of any level of disposable income. C)break even when his disposable income is $8,000. D)save two-tenths of any level of disposable income.