Answer to the statement: True
Answer:
The marginal propensity to consume is 0.2
Explanation:
As we know
Marginal propensity to consume (MPC) is equal to change in consumer spending divided by change in disposable income
Substituting the given values, we get -
Marginal propensity to consume (MPC)

The marginal propensity to consume is 0.2
They are offered to students based on their GPAs; one way of measuring merit in schools.