30. Given this diagram; what is the mpc (marginal propensity to consume?a) 4/5b) 20c) – 20d) 100e) 5 140120Q10080AE60402080100120Xn204060-20-40income: Qexpenditures, income

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30. Given this diagram; what is the mpc (marginal propensity to consume? a) 4/5 b) 20 c) – 20 d) 100 e) 5

ENGR.ECONOMIC ANALYSIS

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Chapter1: Making Economics Decisions

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30. Given this diagram; what is the mpc (marginal propensity to consume? a) 4/5 b) 20 c) – 20 d) 100 e) 5

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The marginal propensity to consume for this economy is …………. if income rises from $9000 to $10000 and consumption is rises from $750 to $1500 0.650. 0.750. 0.650 or 0.664, depending on whether income is $10,000 or $11,000. 0.800.
When Erica’s income changes from $1000 to $1500, her consumption changes from $700 to $1100. Erica’s Marginal Propensity to Consume = Group of answer choices a. 0.2 b. We do not have enough information to answer this question c. 1.25 d. 0.8 e. 0.6 f. 0.4
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Explain the concept of the 100X Multiplier using the idea of diminishing marginal utility.
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If national income increases by $20 million and consumption increases by $5 million, the marginal propensity to consume is A) 4. B) 0.75. C) 0.5. D) 0.25.
TOPIC: Consumption and Saving
1. Use the following table with information on the consumption behavior of the people of Gotham to answer the following questions: Disposable Income Consumption $300 $440 $0 $200 a. What is the value of 'a' or autonomous consumption in this economy? b. What is the value of 'b’ or the Marginal Propensity to Consume (MPC) in this economy? Interpret the meaning of this MPC value in one sentence.
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