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] D
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