Questions: Exhibit 18-9 Consumption function In Exhibit 18-9, the value of the marginal propensity to consume is: 0.75 . 0.80 0.50 0.25 0.20

Exhibit 18-9 Consumption function

In Exhibit 18-9, the value of the marginal propensity to consume is:
0.75 .
0.80
0.50
0.25
0.20
Transcript text: Exhibit 18-9 Consumption function In Exhibit 18-9, the value of the marginal propensity to consume is: 0.75 . 0.80 0.50 0.25 0.20
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Solution

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The answer is 0.75.

The marginal propensity to consume (MPC) is the change in consumption resulting from a change in income. In this case, the value of the MPC is given as 0.75 in Exhibit 18-9. This means that for every additional unit of income, 75% of it will be consumed.

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