The marginal propensity to consume can be found by dividing
A)Total consumption by total saving.
B)Total consumption by the number of people consuming.
C)The change in total consumption by the change in disposable income.
D)Disposable income by total consumption.

Question

Quizplus · Accepted Answer

The marginal propensity to consume (MPC) measures the change in consumption spending for a given change in disposable income. Therefore, the MPC can be found by dividing the change in total consumption by the change in disposable income.

The Marginal Propensity to Consume Can Be Found by Dividing