Answer to Question #269951 in Macroeconomics for Anna

Question #269951

The mpc = 0.75 and disposable income goes up by $100. This means consumption will go up by _____.

A. $13.33

B. $25

C. $75

D. $133

Expert's answer

Consumption will go up by 0.75"\u00d7" 100"=" $75

Answer is C. $75

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