The Following Table Shows Data on Consumption at Various Levels

question 6

Multiple Choice

The following table shows data on consumption at various levels of income. Income
Consumption
$0
$250
$500
$700
$1,000
$1,150
$1,500
$1,600
$2,000
$2,050
$2,500
$2,500
The value of the MPC is:

• A) 0.25.
• B) 0.75.
• C) 0.80.
• D) 0.90.

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Definitions:

Commercial Paper

A written promise from one company to another to pay a specific amount of money.

Accounts Receivable

Funds that are due to a company by customers who have purchased goods or services on credit.