Use the information below to answer the following questions.
Fact 27.1.1
In an economy, when disposable income increases from $400 billion to $500 billion, consumption expenditure increases from $480 billion to $540 billion.
-Consider Fact 27.1.1. The marginal propensity to consume is
A)0.75.
B)0.80.
C)0.60.
D)0.40.
E)0.25.

Question

Quizplus · Accepted Answer

The Answer of Use the information below to answer the following questions.
Fact 27.1.1
In an economy, when disposable income increases from $400 billion to $500 billion, consumption expenditure increases from $480 billion to $540 billion.
-Consider Fact 27.1.1. The marginal propensity to consume is
A)0.75.
B)0.80.
C)0.60.
D)0.40.
E)0.25.

Use the Information Below to Answer the Following Questions