Calculate the marginal propensity to consume

Reference no: EM13696608

Use the following data to work Problems 1 and 2. You are given the following information about the economy of the United Kingdom.

Disposable income Consumption expenditure

(Billions of pounds per year)

300 340

400 420

500 500

600 580

700 660

1. Calculate the marginal propensity to consume.

2. Calculate saving at each level of disposable income and calculate the marginal propensity to save.

Reference no: EM13696608

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