-In the above table, the marginal propensity to consume (MPC) is
A) 0.9.
B) 0.75.
C) 0.8.
D) 0.85.

Name: -In the above table, the marginal propensity to consume (MPC) is A) 0.9. B) 0.75. C) 0.8. D) 0.85.
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Question

-In the above table, the marginal propensity to consume (MPC) is
A) 0.9. 
B) 0.75. 
C) 0.8. 
D) 0.85.

Quizplus · Accepted Answer

The marginal propensity to consume (MPC) is calculated as the change in consumption divided by the change in income. Without a specific table provided, a general explanation is that if the MPC is 0.8, it means that for every additional dollar of income, consumption increases by 80 cents.

-In the Above Table, the Marginal Propensity to Consume (MPC)