What is marginal propensity to consume

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Reference no: EM133504535

Question: If, Autonomous Private Final Consumption Expenditure = $ 13,500, Exports = $ 5000

Government Final Consumption Expenditure = $ 6800

Government Investment Expenditure = $ 8900

Marginal Propensity to Import = 0.1, Marginal Propensity to Save = 0.25, Tax rate = 20%

If Government increases its Investment Expenditure by $ 12,000, what is Marginal Propensity to Consume?

Reference no: EM133504535

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