-In the figure above, what is the MPC?
A) 0.50
B) 1.00
C) 0.75
D) 0.90
E) 0.80

Name: -In the figure above, what is the MPC? A) 0.50 B) 1.00 C) 0.75 D) 0.90 E) 0.80
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Question

-In the figure above, what is the MPC?
A) 0.50 
B) 1.00 
C) 0.75 
D) 0.90 
E) 0.80

Quizplus · Accepted Answer

The MPC is the slope of the consumption function, which is the line that shows the relationship between disposable income and consumption. In this case, the slope of the consumption function is 0.50, so the MPC is 0.50.

-In the Figure Above, What Is the MPC