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

Question 114

Multiple Choice

If Melanie had $200,000 of income and spent $180,000 on consumption in 2010 and had $300,000 of income and spent $240,000 on consumption in 2011:


A) ​her APC in 2010 was 0.8.
B) ​her APC in 2011 was 0.9.
C) ​her MPC was 0.6.
D) ​her MPC was 0.8.

Correct Answer:

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