-Refer to the graph above to answer this question.What is the value of the MPS?
A)0.2.
B)0.25.
C)0.4.
D)0.5.
E)-100.

Name: -Refer to the graph above to answer this question.What is the value of the MPS? A)0.2. B)0.25. C)0.4. D)0.5. E)-100.
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Question

-Refer to the graph above to answer this question.What is the value of the MPS?
A)0.2. 
B)0.25. 
C)0.4. 
D)0.5. 
E)-100.

Quizplus · Accepted Answer

The MPS is the slope of the consumption function, which is the change in consumption divided by the change in income. In this case, the slope is 0.2, so the MPS is 0.2.

-Refer to the Graph Above to Answer This Question