Consider the following consumption function:C=100+0.6YWhat is the marginal propensity to consume?
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Solution 1
The marginal propensity to consume (MPC) is the increase in consumer spending due to an increase in income. In the consumption function C = 100 + 0.6Y, the MPC is represented by the coefficient of Y, which is 0.6. This means that for every additional dollar of income, consumption will increase by 60 Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
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