1. Your friend just got an unexpected $1500 tax refund. She plans to put $800 toward paying off credit card debt, put $300 toward her student loans, and use the remaining $400 to purchase a new grill for her deck. What is your friend's marginal propensity to consume? By how much has she increased her net wealth?

1. Your friend just got an unexpected $1500 tax refund. She plans to put $800 toward paying off credit card debt, put $300 toward her student loans, and use the remaining $400 to purchase a new grill for her deck. What is your friend's marginal propensity to consume? By how much has she increased her net wealth?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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