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If Melanie Had $200,000 of Income and Spent $180,000 on Consumption

Question 52

Multiple Choice

If Melanie had $200,000 of income and spent $180,000 on consumption in 2003 and had $300,000 of income and spent $240,000 on consumption in 2004:


A) her APC in 2003 was 0.8.
B) her APC in 2004 was 0.9.
C) her MPC was 0.6.
D) her MPC was 0.8.
E) her MPC was 0.9.

Correct Answer:

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