Marginal Propensity to Consume
James has a marginal propensity to consume of 0.75. Which of the following statements is true?
A
He spends 25 cents of every additional dollar of income on consumption.
B
His total consumption spending exceeds his total income.
C
He saves 75 cents of every additional dollar of income.
D
He spends 75 cents of every additional dollar of income on consumption.
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