-Based upon the above table, the MPC for the consumption function is
A) increasing as income rises.
B) equal to 1.0 at $600 billion.
C) constant at 0.25.
D) constant at 0.75.

Question

-Based upon the above table, the MPC for the consumption function is
A) increasing as income rises. 
B) equal to 1.0 at $600 billion. 
C) constant at 0.25. 
D) constant at 0.75.

Quizplus · Accepted Answer

The MPC (marginal propensity to consume) is constant at 0.75, meaning that for every additional dollar of income, consumption increases by 75 cents.

-Based Upon the Above Table, the MPC for the Consumption