If consumption increases by $400 when income increases by $500, then the marginal propensity to consume is?

0 ⤊

a. 900
b. 100
c. 0.80
d. 1.20

I think it is: c. 0.80

2007-03-27 14:26:40 · 4 answers · asked by Anonymous in Business & Finance ➔ Investing

I think it is: c. 0.80

I agree because of 400 out of 500 is 80%.

Does this help any?

2007-03-29 10:49:55 · answer #1 · answered by Anonymous · 0⤊ 0⤋

0.80 is the right answer. Good job using all possible resources to get your homework done.

2007-03-27 22:28:34 · answer #2 · answered by FinanceMike 2 · 0⤊ 1⤋

yes it is c. the other three (especially a and b) are ridiculous

2007-03-27 21:40:08 · answer #3 · answered by Andrew D 1 · 0⤊ 0⤋

correct

2007-03-27 21:29:44 · answer #4 · answered by vospire s 5 · 0⤊ 0⤋