Answer:
0.94%
Explanation:
Income rises from $12,000 to $12,400
$12,400-$12,000
= $400
Consumption rises from $11,800 to $12,176
= $12,176-$11,800
= $376
Therefore the marginal propensity to consume can be calculated as follows
= 376/400
= 0.94
Hence the marginal propensity to consume is 0.94%
