1. Your friend just got an unexpected $1500 tax refund. She plans to put $800 toward paying off credit card debt, put $300 toward her student loans, and use the remaining $400 to purchase a new grill for her deck. What is your friend's marginal propensity to consume? By how much has she increased her net wealth?

1. Your friend just got an unexpected $1500 tax refund. She plans to put $800 toward paying off credit card debt, put $300 toward her student loans, and use the remaining $400 to purchase a new grill for her deck. What is your friend's marginal propensity to consume? By how much has she increased her net wealth?

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: Six Debates Over Macroeconomic Policy

Section: Chapter Questions

Problem 6PA

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