Share
Explore BrainMass

The marginal propensity to consume

Could someone please help with the following true/false question. I am lost on how to figure it out. Thanks so much:)

Q: The marginal propensity to consume is 0.8 and autonomous expenditures have just increased by $122. Equilibrium income will drop by $488.

Solution Summary

The marginal propensity to consume is figured.

$2.19