Suppose investment spending increases by $50 billion and as a result the equilibrium income increases by $200 billion. the value

Question

makkiz [27]

3 years ago

6

Suppose investment spending increases by $50 billion and as a result the equilibrium income increases by $200 billion. the value

of the mpc is

Business

1 answer:

iren [92.7K] · Answer 1 · 2022-08-04T23:36:55+03:00

iren [92.7K]3 years ago

8 0

<span>The marginal propensity to consume (MPC) is the the change in consumption divided by change in income. Where change in in consumption = $50B and change in income = $200B. So we have 50/200 =1/4 = 0.25. So the MPC is $250M</span>