If a household's income rises from $46,000 to $46,700 and its consumption spending rises from $35,800 to $36,400,then its:

A) marginal propensity to consume is 0.86.
B) marginal propensity to consume is 0.99.
C) marginal propensity to consume is 0.98.
D) marginal propensity to save is 0.01.
E) marginal propensity to save is 0.86.

Marginal Propensity

The ratio of change in an economic variable (e.g., consumption, saving) to a change in another economic variable (e.g., income).

Disposable Income

Post-tax income that households can allocate towards savings and expenses.

Consumption Spending

The total amount of money that households spend on goods and services within a certain period.