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Elenna [48]
3 years ago
15

Suppose Deborah gets a sales bonus at her place of work that gives her an extra $600 of disposable income. She chooses to spend

$480 and save the remaining $120.
1. From this, you can tell that Deborah marginal propensity to consume (MPC) is __________.
a. 0.48
b. 0.12
c. 0.20
d. 0.80
Business
1 answer:
Mashutka [201]3 years ago
7 0

Answer:

Option (d) is correct.

Explanation:

Suppose Deborah gets a sales bonus at her place of work,

Disposable Income, YD = $ 600

Consumption, C = $480

Savings , S = $ 120

Marginal propensity to consumer, MPC:

= Consumption ÷ Disposable Income

= 480 ÷ 600

= 0.8

Therefore, Deborah marginal propensity to consume (MPC) is 0.80

Option (d)

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Answer:

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Answer:

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Answer:

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Answer:

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