Each term (3 months) the current group of economics students completed a questionnaire as to how much they would spend on new purchases compared to how much they would save/pay off bills, if they suddenly and unexpectedly received a check for $1,000. The average MPC is shown in the table below.Month in which student poll was takenAverage of students’ responses as MPCMarch0.41June0.30September0.22December0.56 What do these MPC’s imply about the students’ thinking over the course of the year? (Enter response here.) What is likely happening in the economy during the same period of time?

The marginal propensity to consume illustrates how much a consumer is willing to spend out of all…

Answered: Each term (3 months) the current group…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Each term (3 months) the current group of economics students completed a questionnaire as to how much they would spend on new purchases compared to how much they would save/pay off bills, if they suddenly and unexpectedly received a check for $1,000. The average MPC is shown in the table below.

Month in which student poll was taken	Average of students’ responses as MPC
March	0.41
June	0.30
September	0.22
December	0.56

What do these MPC’s imply about the students’ thinking over the course of the year?

(Enter response here.)

What is likely happening in the economy during the same period of time?

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