-In the above figure, the marginal propensity to consume equals
A) 0.90.
B) 0.75.
C) 0.80.
D) 0.85.

Name: -In the above figure, the marginal propensity to consume equals A) 0.90. B) 0.75. C) 0.80. D) 0.85.
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Question

-In the above figure, the marginal propensity to consume equals
A) 0.90. 
B) 0.75. 
C) 0.80. 
D) 0.85.

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 75 and the change in income is 100, so the marginal propensity to consume is 75/100 = 0.75.

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