Income and consumption changes for five people are shown in the table. Given this information, rank the marginal propensities to consume (MPC) for the five people from largest to smallest. Largest MPC to Smallest MPC Answer Bank Colin Barry Al Dan Ernest Name Income change Consumption change Al +$10,000+$10,000 +$6,000+$6,000 Barry +$5,000+$5,000 +$1,600+$1,600 Colin +$2,000+$2,000 +$1,600+$1,600 Dan −$5,000−$5,000 −$3,500−$3,500 Ernest −$10,000−$10,000 −$4,000−$4,000
Income and consumption changes for five people are shown in the table. Given this information, rank the marginal propensities to consume (MPC) for the five people from largest to smallest. Largest MPC to Smallest MPC Answer Bank Colin Barry Al Dan Ernest Name Income change Consumption change Al +$10,000+$10,000 +$6,000+$6,000 Barry +$5,000+$5,000 +$1,600+$1,600 Colin +$2,000+$2,000 +$1,600+$1,600 Dan −$5,000−$5,000 −$3,500−$3,500 Ernest −$10,000−$10,000 −$4,000−$4,000
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Income and consumption changes for five people are shown in the table. Given this information, rank the marginal propensities to consume (MPC) for the five people from largest to smallest.
Largest MPC to Smallest MPC
Answer Bank
Colin
Barry
Al
Dan
Ernest
Name | Income change | Consumption change |
---|---|---|
Al | +$10,000+$10,000 | +$6,000+$6,000 |
Barry | +$5,000+$5,000 | +$1,600+$1,600 |
Colin | +$2,000+$2,000 | +$1,600+$1,600 |
Dan | −$5,000−$5,000 | −$3,500−$3,500 |
Ernest | −$10,000−$10,000 | −$4,000−$4,000 |
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