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

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

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

Quizplus · Accepted Answer

MPC is the change in consumption divided by the change in income. In this case, the change in consumption is $100 and the change in income is $120, so the MPC is 100/120 = 0.83.

-In the Figure Above, What Is the MPC