View the step-by-step solution to:

Income is 90 and savings is 2. Then income increases to 100 and consumption is 97. What will the marginal propensity to consumer be?

Income is 90 and savings is 2. Then income increases to 100 and consumption is 97. What will the marginal propensity to consumer be?

Sign up to view the entire interaction

Top Answer

Hi, Here is the file you requested. Please let me know if you have any questions, I will be... View the full answer

MPC.docx

Marginal propensity to consumption is defined as
the amount which consumption changes in response to an incremental change
in disposable income. In other words, it is equal to the change in...

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask a homework question - tutors are online