Income and consumption changes for five people are shown in the table. Given this information, rank the marginal propensities to consume (MPC) for the five people from largest to smallest. Largest MPC to Smallest MPC Answer Bank Colin Barry Al Dan Ernest Name Income change Consumption change Al +$10,000+$10,000 +$6,000+$6,000 Barry +$5,000+$5,000 +$1,600+$1,600 Colin +$2,000+$2,000 +$1,600+$1,600 Dan −$5,000−$5,000 −$3,500−$3,500 Ernest −$10,000−$10,000 −$4,000−$4,000
Income and consumption changes for five people are shown in the table. Given this information, rank the marginal propensities to consume (MPC) for the five people from largest to smallest. Largest MPC to Smallest MPC Answer Bank Colin Barry Al Dan Ernest Name Income change Consumption change Al +$10,000+$10,000 +$6,000+$6,000 Barry +$5,000+$5,000 +$1,600+$1,600 Colin +$2,000+$2,000 +$1,600+$1,600 Dan −$5,000−$5,000 −$3,500−$3,500 Ernest −$10,000−$10,000 −$4,000−$4,000
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
ChapterD: The Expenditure-output Model
Section: Chapter Questions
Problem 24CTQ: Exercise D24 Compare two policies: a tax cut on income or an increase in government spending on...
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Income and consumption changes for five people are shown in the table. Given this information, rank the marginal propensities to consume (MPC) for the five people from largest to smallest.
Largest MPC to Smallest MPC
Answer Bank
Colin
Barry
Al
Dan
Ernest
| Name | Income change | Consumption change |
|---|---|---|
| Al | +$10,000+$10,000 | +$6,000+$6,000 |
| Barry | +$5,000+$5,000 | +$1,600+$1,600 |
| Colin | +$2,000+$2,000 | +$1,600+$1,600 |
| Dan | −$5,000−$5,000 | −$3,500−$3,500 |
| Ernest | −$10,000−$10,000 | −$4,000−$4,000 |
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