Refer to the information provided in Figure 9.4 below to answer the questions that follow. Figure 9.4
-Refer to Figure 9.4. Along aggregate expenditure AE₁, the MPC is

Question

Refer to the information provided in Figure 9.4 below to answer the questions that follow. Figure 9.4 -Refer to Figure 9.4. Along aggregate expenditure AE₁, the MPC is

Quizplus · Accepted Answer

The Marginal Propensity to Consume (MPC) is calculated by the change in consumption divided by the change in income. Without the specific figure (Figure 9.4) to refer to, the correct answer cannot be directly identified from the provided options. However, given the choices, the correct answer is typically determined by analyzing the slope of the aggregate expenditure line in the figure, which represents the MPC. Since the specific details from Figure 9.4 are not provided, the correct answer (C) is based on a placeholder choice and the explanation is generic. In practice, one would calculate the MPC as the slope of the consumption function in the figure.

Refer to the Information Provided in Figure 9