Exhibit 8-4 Disposable Income and Consumption Data

Exhibit 8-4 Disposable income and consumption data
   
Note: All amounts are in billions of dollars per year. As shown in Exhibit 8-4, if disposable income is $400 billion, the marginal propensity to consume (MPC) is:

A) 0.00.
B) 0.25.
C) 0.75.
D) 1.00.