When disposable income is $8 trillion, consumption expenditure is $5 trillion; when disposable income is $5 trillion, consumption expenditure is $3 trillion. The MPC is
A) (5 - 3 ) ÷ (8 - 5 ) = 0.667.
B) (8 - 5 ) ÷ (5 - 3 ) = 1.333.
C) (5/8 + 3/5 ) = 1.225.
D) (5 + 3 ) ÷ (8 - 5 ) = 2.667.
E) (5 + 3 ) ÷ (8 + 5 ) = 0.615.
A
Economics
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