Psychological law of consumption states that the value of MPC is lies between zero and
A)1
B)2
C)3
D)4

Name: Psychological law of consumption states that the value of MPC is lies between zero and A)1 B)2 C)3 D)4
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Question

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The psychological law of consumption, as proposed by Keynes, states that the Marginal Propensity to Consume (MPC) is between 0 and 1. This means that when income increases, consumption increases but by less than the increase in income.

Psychological Law of Consumption States That the Value of MPC