The marginal propensity to consume is best defined as the change in consumption expenditure caused by a one-unit increase in income.

Question

Quizplus · Accepted Answer

The marginal propensity to consume (MPC) is the increase in consumer spending resulting from an increase in income. It represents the proportion of additional income that is spent on consumption goods and services. Therefore, the statement is true.

The Marginal Propensity to Consume Is Best Defined as the Change