The numerical value of the MPC is typically
A)less than 1.
B)equal to 1.
C)greater than 1.
D)unpredictable.

Name: The numerical value of the MPC is typically A)less than 1. B)equal to 1. C)greater than 1. D)unpredictable.
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Question

Quizplus · Accepted Answer

The MPC (marginal propensity to consume) represents the increase in consumer spending that occurs with each additional dollar of disposable income. Since consumers tend to save at least some portion of their income, the MPC is typically less than 1. Therefore, option A is correct.

The Numerical Value of the MPC Is Typically