The marginal propensity to consume (MPC)is
A) the change in consumption divided by the change in disposable income
B) total consumption divided by total disposable income
C) the change in disposable income divided by the change in consumption
D) total disposable income divided by total consumption
E) the change in disposable income minus the change in consumption

Question

Quizplus · Accepted Answer

The MPC is defined as the change in consumption divided by the change in disposable income. It measures the fraction of any change in disposable income that is spent on consumption.

The Marginal Propensity to Consume (MPC)is