Between 2008 and 2009 the government reported that disposable income decreased by $300 billion and consumption expenditure decreased by $180 billion.Based on these data,the MPC equals

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The marginal propensity to consume (MPC) is calculated as the change in consumption divided by the change in disposable income. Here, MPC = -$180 billion / -$300 billion = 0.60.

Between 2008 and 2009 the Government Reported That Disposable Income