Between March and May of 2007, Africa's real disposable income increased from 61.3 billion to 61.9 billion . During that same period, Africa's real consumption increased from 38.9 billion to 39.2 billion. Calculate the MPC for Africa.
Between March and May of 2007, Africa's real disposable income increased from 61.3 billion to 61.9 billion . During that same period, Africa's real consumption increased from 38.9 billion to 39.2 billion. Calculate the MPC for Africa.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Between March and May of 2007, Africa's real disposable income increased from 61.3 billion to 61.9 billion . During that same period, Africa's real consumption increased from 38.9 billion to 39.2 billion.
Calculate the MPC for Africa.
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Step 1
Marginal propensity to consume ration of the change in the level of consumption to change in the level of income.
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