The Marginal Propensity to Consume is how much you spend for every dollar your income increases. How much money is spent if MPC is .8 and you have a $10,000 raise? A. $80 B. $8,000 C. $800
The Marginal Propensity to Consume is how much you spend for every dollar your income increases. How much money is spent if MPC is .8 and you have a $10,000 raise? A. $80 B. $8,000 C. $800
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The Marginal Propensity to Consume is how
much you spend for every dollar your income
increases. How much money is spent if MPC is
.8 and you have a $10,000 raise?
A. $80
B. $8,000
$800
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