In year 1, Adam earns $1,000 and saves $100. In year 2, Adam gets a $500 raise

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In year 1, Adam earns $1,000 and saves $100. In year 2, Adam gets a $500 raise so that he earns a total of $1,500. Out of that

$1,500, he saves $200. What is Adam’s MPC out of his $500 raise?

a. 0.50

b. 0.75

c. 0.80

d. 1.00

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Macroeconomics

ISBN: 9781264112456

22nd Edition

Authors: Campbell McConnell, Stanley Brue, Sean Flynn

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