Disposable Income Consumption

$5,000 $6,000

$7,500 $8,000

$10,000 $10,000

$12,500 $12,000

1. The marginal propensity to consume (MPC) is equal to:

a. 0.2

b. 0.25

c. 0.75

d. 0.8

2. The marginal propensity to save (MPS) is equal to:

a. 0.2

b. 0.25

c. 0.75

d. 0.8

Question

Edward Mullen

Business

21 May, 18:59

Disposable Income Consumption

$5,000 $6,000

$7,500 $8,000

$10,000 $10,000

$12,500 $12,000

1. The marginal propensity to consume (MPC) is equal to:

a. 0.2

b. 0.25

c. 0.75

d. 0.8

2. The marginal propensity to save (MPS) is equal to:

a. 0.2

b. 0.25

c. 0.75

d. 0.8

+1

Answers (1)

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Valeria · Answer 1

F income increase by $20,000, gov't purchases are fixed at $10,000, investment spending is fixed at $5,000, net exports are fixed

If real disposable income by $10,000 and real consumption spending interested by $7,500

Disposable Income Consumption$5,000 $6,000$7,500 $8,000$10,000 $10,000$12,500 $12,0001. The marginal propensity to consume (MPC) is equal to:a. 0.2b. 0.25c. 0.75d. 0.82. The marginal propensity to save (MPS) is equal to:a. 0.2b. 0.25c. 0.75d. 0.8

Disposable Income Consumption

$5,000 $6,000

$7,500 $8,000

$10,000 $10,000

$12,500 $12,000

1. The marginal propensity to consume (MPC) is equal to:

a. 0.2

b. 0.25

c. 0.75

d. 0.8

2. The marginal propensity to save (MPS) is equal to:

a. 0.2

b. 0.25

c. 0.75

d. 0.8