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If the average marginal propensity to consume is 0.8, then a $10 million increase in total income will lead to a increase in consumption. $80 million $0.8 million $8 million $2 million

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

If the average marginal propensity to consume is 0.8, then a $10 million increase in
total income will lead to a
increase in consumption.
$80 million
$0.8 million
$8 million
$2 million

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