Multiple Choice
Vannah earned $250 000 in 2011 as a celebrity endorser and spokesperson.She spent 85 percent of her earnings.In 2012,with a new contract she earned $750 000 per year.Her consumption increased by $250 000.Which of the following statements about her propensity to consume is NOT accurate?
A) Her 2012 marginal propensity to consume is 0.50.
B) Her 2011 average propensity to consume is 0.85.
C) Her average propensity to consume fell between 2011 and 2012.
D) Her marginal propensity to save falls to 0.15 in 2012.
Correct Answer:
Verified
Correct Answer:
Verified
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