Question #108408
Suppose that: C = 200 + 0.8 Y find:

1) MPC will equal
1
Expert's answer
2020-04-08T09:59:49-0400

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

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

MPC = 0.8


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