What is the marginal propensity to consume if: a. Consumption increases by ($75) when disposable income rises
Question:
What is the marginal propensity to consume if:
a. Consumption increases by \($75\) when disposable income rises by \($100\)?
b. Consumption falls by \($50\) when disposable income falls by \($100\)?
c. Saving equals \($20\) when disposable income equals \($100\) and saving equals \($40\) when disposable income equals \($300\)?
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a The marginal propensity to consume MPC in this case ...View the full answer
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Sinmon Warui Kamau
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