If, in response to an increase in investment of $10 billion, equilibrium income rises by a total of $50 billion, then the marginal propensity to save is
(A) 0.1
(B) 0.2
(C) 0.5
(D) 0.8
(E) 0.9
Answer: B
If, in response to an increase in investment of $10 billion, equilibrium income rises by a total of $50 billion, then the marginal propensity to save is
(A) 0.1
(B) 0.2
(C) 0.5
(D) 0.8
(E) 0.9
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