If Your Income Increases from $40,000 to $48,000 and Your

question 176

Multiple Choice

If your income increases from $40,000 to $48,000 and your consumption increases from $35,000 to $39,000, your marginal propensity to consume (MPC) is:

• A) 0.20.
• B) 0.40.
• C) 0.50.
• D) 0.80.
• E) 1.00.