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Crazy boy [7]
3 years ago
8

Suppose two successive levels of disposable personal income increases from $16 to $21 billion and the change in consumption spen

ding between these two levels of disposable personal income is $2 billion, then the MPC will equal _____.
Business
1 answer:
Montano1993 [528]3 years ago
5 0

Answer: 0.4

Explanation: MPC, that is, marginal propensity to consume is used to quantify the consumption induced. As we know that, MPC is calculated as follows :-

MPC\:=\:\frac{Chane\:in\:consumer\:spending}{change\:in\:income}

MPC\:=\:\frac{2}{21-16}

MPC\:=\:\frac{2}{5}

                 = 0.4

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The first thing to do is to subtract the registration fee from the total

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then divide the remaining number by 12 because it is monthly 

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I hope I've helped!
6 0
3 years ago
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Option b (increasing) is the correct choice.

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8 0
4 years ago
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pentagon [3]

Answer:

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7 0
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3 0
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Procedural justice.

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7 0
4 years ago
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