Solved

The Nation Has Its Own MPC

Question 87

Multiple Choice

The nation has its own MPC. When disposable income increases from $300 billion to $400 billion, national consumption increases from $300 billion to $360 billion. At Y = $400 billion, the MPC is:


A) 0.2.
B) 0.5.
C) 0.6.
D) 0.67.
E) 1.33.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q2: The vertical intercept of the consumption function

Q82: As shown in Exhibit 8-3, saving occurs:<br>A)at

Q83: The marginal propensity to save plus the

Q84: According to Keynes, what is the most

Q86: Exhibit 8-4 Disposable income and consumption data

Q88: Exhibit 8-4 Disposable income and consumption data<br><img

Q89: Exhibit 8-10 Consumption function <img src="https://d2lvgg3v3hfg70.cloudfront.net/TBX9027/.jpg" alt="Exhibit

Q90: If the economy were left on its

Q91: Exhibit 8-10 Consumption function <img src="https://d2lvgg3v3hfg70.cloudfront.net/TBX9027/.jpg" alt="Exhibit

Q92: Exhibit 8-9 Aggregate expenditures function <img src="https://d2lvgg3v3hfg70.cloudfront.net/TBX9027/.jpg"