The marginal propensity to consume (MPC) is calculated by which formula?
A) MPC = change in DI divided by change in C
B) MPC = change in GDP divided by change in DI
C) MPC = change in C divided by change in DI
D) MPC = change in C divided by change in GDP
Correct Answer:
Verified
Q94: The marginal propensity to consume is
A)disposable income
Q95: The change in consumption divided by the
Q96: Economists expect the relationship between consumption and
Q97: The difference between disposable income and consumption
Q98: If DI falls by $100 billion, and
Q100: If disposable income increases by $400 billion
Q101: A movement upward along the consumption function
Q102: For each $1 of a tax cut,
Q103: A movement along the consumption function can
Q104: Figure 8-1
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