Everything else held constant,if consumption expenditure falls by 160 when disposable income falls by 200,the mpc is
A)0.
B)0.2.
C)0.4.
D)0.8.

Name: Everything else held constant,if consumption expenditure falls by 160 when disposable income falls by 200,the mpc is A)0. B)0.2. C)0.4. D)0.8.
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Question

Quizplus · Accepted Answer

The marginal propensity to consume (MPC) is calculated as the change in consumption expenditure divided by the change in disposable income, which is 160/200 = 0.8.

Everything Else Held Constant,if Consumption Expenditure Falls by 160 When