If consumers spend 79 cents out of every extra dollar received,the:
A) Multiplier is 0.79.
B) MPC is 0.79.
C) MPS is 0.79.
D) MPC is 0.21

Name: If consumers spend 79 cents out of every extra dollar received,the: A) Multiplier is 0.79. B) MPC is 0.79. C) MPS is 0.79. D) MPC is 0.21
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Question

Quizplus · Accepted Answer

The Marginal Propensity to Consume (MPC) is the fraction of extra income that a household consumes rather than saves. If consumers spend 79 cents out of every extra dollar, the MPC is 0.79.

If Consumers Spend 79 Cents Out of Every Extra Dollar