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Monica's current income went up from $100,000 to $105,000 and she increased her current consumption by $2100. What is her marginal propensity to consume? а. 210% b. 42% С. 50%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Monica's current income went up from
$100,000 to $105,000 and she increased
her current consumption by $2100. What is
her marginal propensity to consume?
а.
210%
b.
42%
C.
50%
d.
0.2

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