Everything else held constant,if disposable income increases by 200 and consumption expenditure increases by 150,the mpc is
A)0.
B)0.15.
C)0.5.
D)0.75.

Name: Everything else held constant,if disposable income increases by 200 and consumption expenditure increases by 150,the mpc is A)0. B)0.15. C)0.5. D)0.75.
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Question

Quizplus · Accepted Answer

The marginal propensity to consume (MPC) is calculated as the change in consumption expenditure divided by the change in disposable income, which is 150/200 = 0.75.

Everything Else Held Constant,if Disposable Income Increases by 200 and Consumption