Solved

-Based Upon the Above Table, the MPC for the Consumption

Question 118

Multiple Choice

 Disposable income  (billions of dollars)   Consumption  exp enditure  (billions of dollars)  400450600600800750100090012001050\begin{array} { | l | l | } \hline \begin{array} { l } \text { Disposable income } \\\text { (billions of dollars) }\end{array} & \begin{array} { l } \text { Consumption } \\\text { exp enditure } \\\text { (billions of dollars) }\end{array} \\\hline 400 & 450 \\\hline 600 & 600 \\\hline 800 & 750 \\\hline 1000 & 900 \\\hline 1200 & 1050 \\\hline\end{array}
-Based upon the above table, the MPC for the consumption function is


A) constant at 0.75.
B) increasing as income rises.
C) constant at 0.25.
D) equal to 1.0 at $600 billion.

Correct Answer:

verifed

Verified

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

Related Questions