If a household's disposable income increases from $12,000 to $22,000 and at the same time its consumption expenditure increases from $4,000 to $9,000, then

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The marginal propensity to consume (MPC) is calculated as the change in consumption divided by the change in disposable income. Here, the change in consumption is $9,000 - $4,000 = $5,000, and the change in disposable income is $22,000 - $12,000 = $10,000. Therefore, MPC = $5,000 / $10,000 = 0.5, which corresponds to the slope of the consumption function.

If a Household's Disposable Income Increases from $12,000 to $22,000