An increase in the MPC will cause the consumption function to become steeper (rotate upwards).

Question

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An increase in the marginal propensity to consume (MPC) means that a larger proportion of an increase in income will be spent on consumption. This leads to a steeper slope or upward rotation of the consumption function as more consumption is being generated for a given level of income. Conversely, a decrease in the MPC would result in a flatter slope or downward rotation of the consumption function as less consumption is being generated for a given level of income.

An Increase in the MPC Will Cause the Consumption Function