FIN201_-_SP_2025_-_FE_3590.webp
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FIN201_-_SP_2025_-_FE_3590.webp

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☐ A
(18734) Last year, Linus earned a salary of $25,000 and he spent $24,000, thus saving $1,000. At the end
of the year, he received a bonus of $1,000 and he spent $500 of it, saving the other $500. What was his
marginal propensity to consume?
A. 0.50
B. 0.96
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C. 0.04
D. 0.02

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