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tatiyna
3 years ago
8

If income increases by $100 and consumption increases by $75, the slope of the consumption function equals _____.

Business
1 answer:
Rainbow [258]3 years ago
8 0

Answer:

3/4

Explanation:

The marginal propensity to consume mpc, is the slope of the consumption function and it is what this question requires us to find

We have income increase to be = 100 dollars

Then consumption increase = 75 dollars

MPC = increase in consumption ,75/increase in income 100

= 75/100

= 3/4

Therefore the marginal propensity to consume also called the slope is 3/4

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