If consumption expenditures for a household increase from $1,000 to $1,800 when disposable income rises from $1,000 to $2,000, the marginal propensity to consume is

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The marginal propensity to consume (MPC) is calculated as the change in consumption expenditures divided by the change in disposable income. Here, the change in consumption is $800 ($1,800 - $1,000) and the change in disposable income is $1,000 ($2,000 - $1,000), so MPC = $800 / $1,000 = 0.8.

If Consumption Expenditures for a Household Increase from $1,000 to $1,800