Calculating Marginal Propensity to Consume
A worker regularly earns $1,000 per month. At the end of the year, the worker receives $1,400, which includes the regular monthly salary and a year-end bonus. If the worker saves the entire $400 bonus, what is the marginal propensity to consume?
A
400
B
500
C
0
D
1000
E
1400
Question Leaderboard
Not enough data yet to show leaderboard.