10 Fill in the missing information in the table below. Disposable income ($) Consumption spending (S)...

Question

Question

Answer 1

Answer #1

Marginal propensity to consume = change in consumption / change in disposable income

MPC = (11100-9900)/(11600-10000) = 0.75 (first blank box)

MPC = (12300-11100)/(13200-11600) = 0.75 (second blank box)

Third blank box = 12300 + 800*0.8 = 12940

Fourth blank box = 14000 + 960/0.6 = 15600.

Answer 2

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