Consumption (dollars) $1,200 2,100 3,000 Disposable Income (dollars) $3,000 4,000 5,000 2) Refer to Table 12-3. Given the consumption schedule in the table above, the marginal propensity to consume is A) 0.1. B) 0.4. C) 0.9. D) 0.7.

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A: MPC is marginal propensity to consume. It is percentage of income that is spent on consumption.