Refer to the information provided in Table 23.3 below to answer the question(s) that follow.
Table 23.3
-Refer to Table 23.3. Society's MPC is
A) 0.2.
B) 0.3.
C) 0.75.
D) 0.8.

Question

Refer to the information provided in Table 23.3 below to answer the question(s) that follow.
Table 23.3 
-Refer to Table 23.3. Society's MPC is
A) 0.2. 
B) 0.3. 
C) 0.75. 
D) 0.8.

Quizplus · Accepted Answer

The Marginal Propensity to Consume (MPC) is typically calculated as the change in consumption divided by the change in income. Without the specific data from Table 23.3, the most common textbook example for MPC is 0.75, which indicates that for every additional dollar of income, consumption increases by 75 cents.

Refer to the Information Provided in Table 23