Answer to Question #494 in Math for Leslie

Question

An economy has a break-even point of $3,000. For every additional dollar earned by households, they spend 80 cents. Government purchases $596 in goods and services and also spends $742 in transfer payments. Businesses invest $53 in plant, equipment and inventory. Foreign buyers purchase $60 and buyers from the United States purchase $56 from foreign countries. (All spending and income figures are in billions.) What is the marginal propensity to consume in this economy?