-In the figure above, the marginal propensity to consume is
A) 1.00.
B) 0.25.
C) 3.00.
D) 0.67.

Name: -In the figure above, the marginal propensity to consume is A) 1.00. B) 0.25. C) 3.00. D) 0.67.
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Question

-In the figure above, the marginal propensity to consume is
A) 1.00. 
B) 0.25. 
C) 3.00. 
D) 0.67.

Quizplus · Accepted Answer

The marginal propensity to consume is the change in consumption divided by the change in income. In this case, the change in consumption is 100 and the change in income is 150, so the marginal propensity to consume is 100/150 = 0.67.

-In the Figure Above, the Marginal Propensity to Consume Is