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Unformatted text preview: 6. Given the above consumption function, what Is the slope? 7. Given the above consumption function, what Isthe technicalname for the slope? 6. What Is the fonnula for the Marginal PropensIty to Consume (M PC) ? (HINT: when you hear the word -marginal," think"change". (I.e.,"A"). 7. If MPC Is equal to .90. then for every one dollar earnedIn additionalIncome, how much additional consumption takes place? 8. What Is the formula for the Marginal Propensity to Save (MPS) ? 9. What Is the relationship between MPC & MPS? ,. 10. What Is the formula for the Average Propensity to Consume(AP C) ?...
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- Fall '08