Multiple Choice
Suppose Erin receives an inheritance worth $50,000. If her MPC is 0.75, how much of the additional $50,000 that Erin earns will be spent?
A) $50,000
B) $12,500
C) $37,500
D) $40,000
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q43: If spending increases by $200, and GDP
Q44: The marginal propensity to consume:<br>A) is the
Q45: The figure shows planned aggregate expenditure and
Q46: An inflationary output gap exists when the
Q47: In general, households with lower wealth tend
Q49: Which of the following does not influence
Q50: Suppose a housing bubble inflates house prices
Q51: Which of the following describes the relationship
Q52: Which of the following is not an
Q53: Which of the following scenarios would increase