If your income increases from $40,000 to $48,000 and your consumption increases from $35,000 to $39,000, your marginal propensity to consume (MPC) is:

Name: If your income increases from $40,000 to $48,000 and your consumption increases from $35,000 to $39,000, your marginal propensity to consume (MPC) is:
Brand: Quizplus
Rating: 4.8 (51 reviews)

Question

Quizplus · Accepted Answer

MPC = Change in Consumption / Change in Income

MPC = ($39,000 - $35,000) / ($48,000 - $40,000)

MPC = $4,000 / $8,000

MPC = 0.5

Therefore, the correct answer is C, 0.50.

If Your Income Increases from $40,000 to $48,000 and Your