The following data refers to a national economy with all figures in $billions.

-Refer to the table above to answer this question.What is the value of the MPC?
A)0.4
B)0.5
C)0.6
D)0.8

Question

The following data refers to a national economy with all figures in $billions.
 
-Refer to the table above to answer this question.What is the value of the MPC?
A)0.4 
B)0.5 
C)0.6 
D)0.8

Quizplus · Accepted Answer

The Marginal Propensity to Consume (MPC) is calculated as the change in consumption divided by the change in income. The table must show these changes, and based on typical values, 0.6 is a common MPC value.

The Following Data Refers to a National Economy with All