The table below shows disposable income and desired consumption for a hypothetical economy.Disposable income ($)0100200Select one:The marginal propensity to consume out of an increase in disposable income from $0 to $100 is.a. 0.75b. 0.25OC. 0.80Consumption ($)d. 0.35100175250cross outcross outcross outcross out

Marginal propensity to consume: This represents the portion of an additional unit of income that a…

The table below shows disposable income and desired consumption for a hypothetical economy. Disposable income ($) 0 100 200 Consumption ($) Select one: 100 175 250 The marginal propensity to consume out of an increase in disposable income from $0 to $100 is

The table below shows disposable income and desired consumption for a hypothetical economy. Disposable income ($) 0 100 200 Consumption ($) Select one: 100 175 250 The marginal propensity to consume out of an increase in disposable income from $0 to $100 is

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter18: The Keynesian Model

Section: Chapter Questions

Problem 6SQ

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Question

The table below shows disposable income and desired consumption for a hypothetical economy.
Disposable income ($)
0
100
200
Select one:
The marginal propensity to consume out of an increase in disposable income from $0 to $100 is.
a. 0.75
b. 0.25
OC. 0.80
Consumption ($)
d. 0.35
100
175
250
cross out
cross out
cross out
cross out

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