Refer to Table 9.1 for the following questions.
Table 9.1

-Refer to Table 9.1. The marginal propensity to consume is:
A)0.5.
B)0.6.
C)0.75.
D)0.8.

Question

Refer to Table 9.1 for the following questions.
Table 9.1
 
-Refer to Table 9.1. The marginal propensity to consume is:
A)0.5. 
B)0.6. 
C)0.75. 
D)0.8.

Quizplus · Accepted Answer

The marginal propensity to consume is the change in consumption divided by the change in income. In this case, the change in consumption is 50 and the change in income is 100, so the marginal propensity to consume is 50/100 = 0.5.

Refer to Table 9.1 for the Following Questions