This question has three parts.
(a) Total consumption is $6,900 when income is $10,000, and then total consumption increases to $8,280 when income rises to $12,000. What is the marginal propensity to consume?
(b) Total consumption is $6,720 when income is $14,000, and then total consumption increases to $7,680 when income rises to $16,000. What is the marginal propensity to consume?
(c) Total consumption is $3,680 when income is $4,000, and then total consumption increases to $5,520 when income rises to $6,000. What is the marginal propensity to consume?

Question

Quizplus · Accepted Answer

The Answer of This question has three parts.
(a) Total consumption is $6,900 when income is $10,000, and then total consumption increases to $8,280 when income rises to $12,000. What is the marginal propensity to consume?
(b) Total consumption is $6,720 when income is $14,000, and then total consumption increases to $7,680 when income rises to $16,000. What is the marginal propensity to consume?
(c) Total consumption is $3,680 when income is $4,000, and then total consumption increases to $5,520 when income rises to $6,000. What is the marginal propensity to consume?

This Question Has Three Parts