If the MPC equals 0.75, then
A. for every $100 increase in consumption expenditure, disposable income increases by $75.
B. consumption expenditure is always more than disposable income.
C. for every $100 increase in disposable income, saving increases by $75.
D. for every $100 increase in disposable income, saving increases by $25.
Answer:D
If the MPC equals 0.75, then
A. for every $100 increase in consumption expenditure, disposable income increases by $75. B. consumption expenditure is always more than disposable income. C. for every $100 increase in disposable income, saving increases by $75. D. for every $100 increase in disposable income, saving increases by $25.