Friday, August 19, 2011

What is the Marginal Propensity to Income (MPC)?

Consumption C = 100 +0.8(Y - T), disposable income equals 1000, and Y = 2000. MPC is found by taking consumption and dividing it by disposable income (Y-T). I get this, but i do not understand how the book gets 0.8. Help please

No comments:

Post a Comment