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A-LevelEconomicsThe macroeconomy9708/32 · Feb/Mar 2018 · Q261 Mark

The following data describes an economy's consumption function. income (m) consumption (m) 100 90 140 122 180 154 220 186 What can be deduced about the value of the marginal propensity to consume in this economy? A It increases as income increases. B It decreases as income increases. C It is 0.90. D It is 0.80.

Mark scheme

Marking points from the official mark scheme (Feb/Mar 2018). The mark or mark type is shown in brackets.

  1. [1] D

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About this question

Topic
The macroeconomy, A-Level Economics (syllabus 9708). Structured question, 1 mark.
Source
A-Level Economics, Feb/Mar 2018 Paper 3 Variant 2, question 26.

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