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
failed

Solution

failed
failed

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.

Was this solution helpful?
failed
Unhelpful
failed
Helpful

Questions asked by other users

failedAnswered
Determine the tax liability, marginal tax rate, and average tax rate in each of the following cases. Use the tax tables to determine tax liability. a. Married taxpayers, taxable income of 97,463. b. Married taxpayers, taxable income of 66,829. Note: For all requirements, round "Average tax rate" to 2 decimal places.
failedAnswered
A phospholipid molecule has a polar and a nonpolar end. Because of this, what do water molecules form? 1 pts Covalent bonds with the nonpolar end of the phospholipid molecule. Hydrogen bonds with the nonpolar end of the phospholipid molecule. Hydrogen bonds with the polar end of the phospholipid molecule. Polar bonds with the nonpolar end of the phospholipid molecule. Polar bonds with the polar end of the phospholipid molecule.
failedAnswered
A city council is trying to determine if library B, with extended hours, has a higher proportion of patrons under the age of 18 than library A, which closes at 6:00 pm. A random sample of patrons from both libraries are checked. The results of the data collected are shown below. Library A Library B --- --- **Successes** 56 **Successes** 97 **Observations** 150 **Observations** 200 **Proportion** 0.373 **Proportion** 0.485 **Confidence level** 95% **z-score** 2.091 **p-value** 0.0183
failedAnswered
(5+1)^2 cdot 3
failedAnswered
Career networking is NOT: a. A way to keep in touch with classmates, former coworkers and professors without being a creeper b. A concept that works two ways, where you have to provide career information and opportunities to people within your network c. The way of the past - only old people use networking to find jobs d. A method to find out where you might like to take your career in the future