Your friend Becky just got an unexpected $1,000 ?tax refund. She plans to put $800 ?towards paying off credit card debt, $100 ?toward her student loans, and use the remaining $100 ?to purchase a new grill for her deck. What’s your friend’s marginal propensity to consume (MPC)?
MPC:
By how much did she increase her net wealth?
Change in net wealth: $
The correct answer and explanation is: