Refer to the information provided in Figure 9.1 below to answer the questions that follow. Figure 9.1
-Refer to Figure 9.1. The MPC in this economy is

Question

Refer to the information provided in Figure 9.1 below to answer the questions that follow.  Figure 9.1
-Refer to Figure 9.1. The MPC in this economy is

Quizplus · Accepted Answer

The MPC (marginal propensity to consume) is calculated as the change in consumption divided by the change in income. In Figure 9.1 we can see that the change in consumption is $500 and the change in income is $1,000. Therefore, MPC = 500/1000 = 0.5.

Refer to the Information Provided in Figure 9