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:

Delegator

An individual or entity that assigns responsibility or authority to another party to carry out specific activities or tasks.

Tenants

Tenants are individuals or entities that occupy land or property rented from a landlord under a lease agreement.

Landlords

Property owners who lease their real estate to tenants for a specified time in exchange for regular payments, typically bound by local real estate laws.

Obligors

Parties who are legally obligated to fulfill a duty or repay a debt.