Economics 9708 · AS & A Level · Economic growth

Economic growth — practice question

The table below sets out an economy’s consumption function. income ($m) / consumption ($m): 100/90, 140/122, 180/154, 220/186 What may be concluded about the value of the marginal propensity to consume in this economy?

  • AIt increases as income increases.
  • BIt decreases as income increases.
  • CIt is 0.90.
  • DIt is 0.80.

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