Consider the following information for a family. If the income for the family is $58,000, then an increase in income by $20,000 will result in an increase in consumption by:
A) $15,000 if the MPC is 0.9.
B) $10,000 if the MPC is 0.5.
C) $12,000 if the MPC is 0.7.
D) $1,000 if the MPC is 0.2.

Question

Quizplus · Accepted Answer

The Answer of Consider the following information for a family. If the income for the family is $58,000, then an increase in income by $20,000 will result in an increase in consumption by:
A) $15,000 if the MPC is 0.9.
B) $10,000 if the MPC is 0.5.
C) $12,000 if the MPC is 0.7.
D) $1,000 if the MPC is 0.2.

Consider the Following Information for a Family