Ask Question
2 February, 07:19

If consumer income increases by $100 million in the united states and the mpc is. 6, by how much will consumption increase?

+4
Answers (1)
  1. 2 February, 07:33
    0
    The marginal propensity to consume (MPC) is a measure of the proportion of extra income that will be spent on consumption. If an individual receives an extra $100 and spends $60 on consumption then the person’s MPC is 0.60. If consumer income in the United States increases by $100 million and the MPC is 0.60 consumption in the US will increase by $60 million.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “If consumer income increases by $100 million in the united states and the mpc is. 6, by how much will consumption increase? ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers