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Answer the question on the basis of the following consumption schedule: C = 50 + .75Y. The level of disposable income is $400. What is the MPC of this economy?

Macroeconomics: Principles and Policy (MindTap Course List)

13th Edition

ISBN:9781305280601

Author:William J. Baumol, Alan S. Blinder

Publisher:William J. Baumol, Alan S. Blinder

Chapter8: Aggregate Demand And The Powerful Consumer

Section: Chapter Questions

Problem 3TY

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Answer the question on the basis of the following consumption schedule: C = 50 + .75Y. The level of disposable income is $400.

What is the MPC of this economy?

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