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KIM [24]
3 years ago
8

Scenario 34-1. Take the following information as given for a small, imaginary economy: When income is $10,000, consumption spend

ing is $6,500. When income is $11,000, consumption spending is $7,250. Refer to Scenario 34-1. The marginal propensity to consume (MPC) for this economy is
Business
1 answer:
laiz [17]3 years ago
6 0

Answer:

0.75

Explanation:

Marginal Propensity to Consume (MPC) is the change in consumption due to change in income

Change in consumption = $7,250 - $6,500 = $750

Change in income = $11,000 - $10,000 = $1,000

MPC = Change in consumption / Change in income

MPC = 750 / 100

MPC = 0.75

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<u>Answer:</u>

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<em></em>

<u>Explanation:</u>

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3 years ago
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3 years ago
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Juli2301 [7.4K]

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