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What would be the marginal to consume if they received 100 and spent 70?

User Meatrobot
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Final answer:

The marginal propensity to consume (MPC) is 70% when the individual received $100 and spent $70.

Step-by-step explanation:

The marginal propensity to consume (MPC) is the portion of an additional income that is spent on consumption. To calculate the marginal propensity to consume, we divide the change in consumption by the change in income. In this case, if the individual received $100 and spent $70, the change in consumption is $70 and the change in income is $100-$0=$100. Therefore, the MPC would be $70/$100 = 0.7 or 70%.

User Chris Oldwood
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