14.5 Chapter Figures

The above figure shows a nation's consumption function.
-Using this consumption function, the marginal propensity to consume is

Question

14.5 Chapter Figures
  
The above figure shows a nation's consumption function.
-Using this consumption function, the marginal propensity to consume is

Quizplus · Accepted Answer

The marginal propensity to consume (MPC) is the change in consumption divided by the change in income. An MPC of 0.75 means that for every additional dollar of income, consumption increases by 75 cents.

14.5 Chapter Figures The Above Figure Shows a Nation's Consumption Function