Everything else held constant,if consumption expenditure increases by 65 for a 100 increase in disposable income,the mpc is
A)0.
B)0.5.
C)0.65.
D)1.

Name: Everything else held constant,if consumption expenditure increases by 65 for a 100 increase in disposable income,the mpc is A)0. B)0.5. C)0.65. D)1.
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Question

Quizplus · Accepted Answer

The marginal propensity to consume (MPC) is calculated by dividing the change in consumption expenditure by the change in disposable income, which in this case is 65/100 = 0.65.

Everything Else Held Constant,if Consumption Expenditure Increases by 65 for a 100