Answer to Question #108408 in Macroeconomics for mohamed

Question #108408

Suppose that: C = 200 + 0.8 Y find:

1) MPC will equal

Expert's answer

Marginal Propensity to Consume = Change in consumption divided by change in income

MPC = "(Co - Ci) \/ (Io - Ii)" = Gradient of the equation

MPC = 0.8

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