1 point suppose investment spending increases by $50 billion, and as a result the equilibrium income increases by $200 billion. the value of the mpc is:

The premise that an increase in personal consumer expenditure (consumption) occurs with an increase in disposable income is known as induced consumption, and the marginal propensity to consume (MPC) is a statistic that quantifies it (income after taxes and transfers). Propensity to consume is the percentage of disposable income used for consuming by an individual. MPC is the portion of increased income that a person spends on consumption. A household will spend 65 cents of an additional dollar of disposable income and save 35 cents, for instance, if the marginal propensity to consume is 0.65. Obviously, the household can only spend the additional dollar (without borrowing). The MPC is higher for poorer people than for wealthier people.

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