The graph represents consumption (C) as a function ofdisposable income (DI). Assume the consumption function islinear. What is the value of the marginal propensity toconsume (MPC)?Round the value of the MPC to two decimal places.MPC =Consumption$10509007506004503001500$150 300450600C = DIC750 900 1050Disposable income

MPC stands Marginal Propensity to consume which show the relationship between income and consumption…

The graph represents consumption (C) as a function of isposable income (DI). Assume the consumption function is near. What is the value of the marginal propensity to onsume (MPC)? Cound the value of the MPC to two decimal places. MPC = Consumption $1050 900 750 600 450 300 150 C = DI C

The graph represents consumption (C) as a function of isposable income (DI). Assume the consumption function is near. What is the value of the marginal propensity to onsume (MPC)? Cound the value of the MPC to two decimal places. MPC = Consumption $1050 900 750 600 450 300 150 C = DI C

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 graph represents consumption (C) as a function of
disposable income (DI). Assume the consumption function is
linear. What is the value of the marginal propensity to
consume (MPC)?
Round the value of the MPC to two decimal places.
MPC =
Consumption
$1050
900
750
600
450
300
150
0
$150 300
450
600
C = DI
C
750 900 1050
Disposable income

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