Use the following figure to answer the questions : Figure9.3:

-the MPC in the economy depicted in Figure 9.3
A)Is constant.
B)Increases steadily as disposable income increases.
C)Decreases steadily as disposable income increases.
D)Equals 1.0.

Question

Use the following figure to answer the questions : Figure9.3:
 
-the MPC in the economy depicted in Figure 9.3
A)Is constant. 
B)Increases steadily as disposable income increases. 
C)Decreases steadily as disposable income increases. 
D)Equals 1.0.

Quizplus · Accepted Answer

The Marginal Propensity to Consume (MPC) is constant if it does not change with varying levels of disposable income, which is typically depicted as a straight line in economic models.

Use the Following Figure to Answer the Questions : Figure9