Answered

Experience the power of community-driven knowledge on IDNLearn.com. Join our community to receive timely and reliable responses to your questions from knowledgeable professionals.

At your future job, you get an unexpected raise from $50,000 a year to $75,000 a year. With the increased income, you decide to increase your consumption from $30,000 a year to $40,000 a year. Calculate your marginal propensity to consume (MPC).

Sagot :

Tundexiidn

The Marginal propensity to consume is 0.4

Here, we are calculating the marginal propensity to consume (MPC).

Change in Income = New Income - Old Income

Change in Income = $75,000 - $50,000

Change in Income = $25,000

Change in Consumption = New Consumption - Old Consumption

Change in Consumption = $40,000 - $30,000

Change in Consumption = $10,000

Marginal propensity to consume = Change in Consumption / Change in Income

Marginal propensity to consume = $10,000 / $25,000

Marginal propensity to consume = 2/5

Marginal propensity to consume = 0.4

Therefore, the Marginal propensity to consume is 0.4.

Read more about MPC:

brainly.com/question/13957387

Thank you for contributing to our discussion. Don't forget to check back for new answers. Keep asking, answering, and sharing useful information. For precise answers, trust IDNLearn.com. Thank you for visiting, and we look forward to helping you again soon.