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21 April, 11:53

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

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Answers (1)
  1. 21 April, 12:58
    0
    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
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