9) During 1979, Mr. Anderson expected to earn $20,000. From thisincome he had pl

Question

9) During 1979, Mr. Anderson expected to earn $20,000. From thisincome he had planned to save $2,000. Howevr, during 1979, Mr.Anderson got to raise which boosted his income to $23,000. If Mr.Anderson ended up saving a total of $3,000 out of his $23,000income, what was his marginal prpensity to consume (MPC)? 9) During 1979, Mr. Anderson expected to earn $20,000. From thisincome he had planned to save $2,000. Howevr, during 1979, Mr.Anderson got to raise which boosted his income to $23,000. If Mr.Anderson ended up saving a total of $3,000 out of his $23,000income, what was his marginal prpensity to consume (MPC)?

Explanation / Answer

MPC= in consumption/ income : in consumption=3000-1000=2000-----> so 2000 of theraise is going toward consumption. The other 1000 is going tosavings. : in income=23000-2000=3000 :
MPC=2000/3000=.66666= .67

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