Table 13-1

-Refer to Table 13-1. Calculate the marginal propensity to consume based on the information in the table.
A) 0.00
B) 0.20
C) 0.80
D) 1.40

Question

Table 13-1
 
-Refer to Table 13-1. Calculate the marginal propensity to consume based on the information in the table.
A) 0.00 
B) 0.20 
C) 0.80 
D) 1.40

Quizplus · Accepted Answer

The marginal propensity to consume (MPC) is calculated as the change in consumption divided by the change in income. Without the specific data from Table 13-1, the typical MPC value is often around 0.80, indicating that for every additional dollar of income, consumption increases by 80 cents.

Table 13-1 -Refer to Table 13-1. Calculate the Marginal Propensity to Consume