Answered: If consumption is $30,000 when income…

If consumption is $30,000 when income is $40,000, and consumption increases to $34,000 when income increases to $45,000, the MPC is Select one: O a. None of the options O b. 0.8 O c. 0.2 O d. 0.4

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter17: Capital And Time

Section: Chapter Questions

Problem 17.7P

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Question

If consumption is $30,000 when income is $40,000, and consumption increases to $34,000 when income increases to $45,000, the MPC is

Select one:

O a. None of the options

O b. 0.8 O

c. 0.2

O d. 0.4

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