-The above table has data from the nation of Media. Based on these data, the marginal propensity to consume is
A) 0.67.
B) 1.33.
C) 0.25.
D) 0.75.
E) 1.50.

Question

-The above table has data from the nation of Media. Based on these data, the marginal propensity to consume is
A) 0.67. 
B) 1.33. 
C) 0.25. 
D) 0.75. 
E) 1.50.

Quizplus · Accepted Answer

The marginal propensity to consume (MPC) is calculated as the change in consumption divided by the change in income. If the table data shows that for every additional unit of income, consumption increases by 0.75 units, then the MPC is 0.75.

-The Above Table Has Data from the Nation of Media