Exhibit 9-2

-In Exhibit 9-2, the marginal propensity to consume equals
A)140
B)1.00
C)1.43
D)0.43
E)0.70

Name: Exhibit 9-2 -In Exhibit 9-2, the marginal propensity to consume equals A)140 B)1.00 C)1.43 D)0.43 E)0.70
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Question

Exhibit 9-2
 
-In Exhibit 9-2, the marginal propensity to consume equals
A)140 
B)1.00 
C)1.43 
D)0.43 
E)0.70

Quizplus · Accepted Answer

The marginal propensity to consume (MPC) is the change in consumption divided by the change in income. An MPC of 0.70 means that for every additional dollar of income, consumption increases by 70 cents.

Exhibit 9-2 -In Exhibit 9-2, the Marginal Propensity to Consume Equals