Table 11.1

-Refer to Table 11.1. What is the value of the marginal propensity to consume?

Question

Table 11.1
 
-Refer to Table 11.1. What is the value of the marginal propensity to consume?

Quizplus · Accepted Answer

The value of the marginal propensity to consume can be found by dividing the change in consumption by the change in income. In this table, when income increases from $700 to $800, consumption increases from $760 to $835, resulting in a change in consumption of $75 and a change in income of $100. Thus, the marginal propensity to consume is 0.75 (75/100). Choice C is the correct answer.

Table 11.1 -Refer to Table 11.1. What Is the Value of the the Value