Refer to the information provided in Table 23.2 below to answer the question(s) that follow.
Table 23.2
-Refer to Table 23.2. Society's MPC is
A) 0.1.
B) 0.2.
C) 0.8.
D) 0.9.

Question

Refer to the information provided in Table 23.2 below to answer the question(s) that follow.
Table 23.2 
-Refer to Table 23.2. Society's MPC is
A) 0.1. 
B) 0.2. 
C) 0.8. 
D) 0.9.

Quizplus · Accepted Answer

The MPC is calculated as the change in consumption divided by the change in income. In this table, the change in consumption when income increases from 2,500 to 2,600 is 90, and the change in income is 100. So the MPC is 90/100 = 0.9.

Refer to the Information Provided in Table 23