MPC = 0.63;MPM = 0.1
-Refer to the above information to answer this question.What is the value of the MPE?
A)0.053
B)0.53
C)0.73
D)0.83

Question

Quizplus · Accepted Answer

The Marginal Propensity to Expend (MPE) is calculated by adding the Marginal Propensity to Consume (MPC) and the Marginal Propensity to Import (MPM). Therefore, MPE = MPC + MPM = 0.63 + 0.1 = 0.73. However, since the correct calculation results in 0.73, and there seems to be a misunderstanding in the choices provided, the intended correct answer based on the calculation is not listed correctly among the options. Given the options, none directly match the correct calculation, suggesting a possible error in the question or answer choices.