Tessa’s break-even level of income is $10,000 and her MPC is 0. If her actual disposable income is $16,000, her level of: consumption spending will…

7. Tessa’s break-even level of income is $10,000 and her MPC is 0.75. If her actual disposable income is $16,000, her level of: A. consumption spending will be $14,500.B. consumption spending will be $15,500.C. consumption spending will be $13,000.D. saving will be $2,500.HOW IS THIS ANSWER A?

Question 7. Tessa’s break-even level of income is $10,000 and her MPC is 0.75. If heractual disposable income is $16,000, her level of:A. consumption spending will be $14,500.B. consumption…

 
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