If the marginal propensity to consume is 0.8, every $10 increase in disposable income increases
A. consumption expenditure by $0.80.
B. consumption expenditure by $18.00.
C. saving by $0.20.
D. consumption expenditure by $8.00.
Answer:D
If the marginal propensity to consume is 0.8, every $10 increase in disposable income increases
A. consumption expenditure by $0.80. B. consumption expenditure by $18.00. C. saving by $0.20. D. consumption expenditure by $8.00.