Suppose Consumption Is Equal to £170

question 78

Multiple Choice

Suppose consumption is equal to £170. If autonomous consumption is £20 and income is £200, what is the value of the marginal propensity to consume (MPC) ?

• A) 0.5
• B) 0.65
• C) 0.7
• D) 0.75

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Definitions:

Wall Length

Wall length is a measurement term referring to the total linear distance of the walls in a given room or structure, typically used in construction and architecture.

Kilograms

A unit of mass in the metric system equal to one thousand grams, commonly used across the globe for measuring weight.

Grams

A unit of mass in the metric system, equal to one thousandth of a kilogram.

Kilogram

A base unit of mass in the International System of Units (SI), equal to 1,000 grams or approximately 2.20462 pounds.