As shown in Exhibit 2, the marginal propensity to consume (MPC) is:   Group of answer choices 0.33. 0.50. 0.67. 0.75.

ECON MACRO
5th Edition
ISBN:9781337000529
Author:William A. McEachern
Publisher:William A. McEachern
Chapter9: Aggregate Demand
Section: Chapter Questions
Problem 3.7P
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As shown in Exhibit 2, the marginal propensity to consume (MPC) is:

 
Group of answer choices
0.33.
0.50.
0.67.
0.75.
Exhibit 2 Aggregate expenditures function
8
7
Real
6
conяппрtion
and investment
expenditures
(trilli ons of
dollars per
year)
2
1
45"
0 1 2 3 4 5 6 7 8 9
Real disposable income
(trilli ons of dollars per year)
4)
3.
Transcribed Image Text:Exhibit 2 Aggregate expenditures function 8 7 Real 6 conяппрtion and investment expenditures (trilli ons of dollars per year) 2 1 45" 0 1 2 3 4 5 6 7 8 9 Real disposable income (trilli ons of dollars per year) 4) 3.
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