1 - MPC equals
A) induced consumption.
B) the net national product.
C) autonomous consumption.
D) the marginal propensity to save.

Question

Quizplus · Accepted Answer

MPC stands for "marginal propensity to consume," which is the proportion of an increase in disposable income that is spent on consumption. It is calculated as the change in consumption divided by the change in income. Therefore, choice D - "the marginal propensity to save" - is the correct answer.

1 - MPC Equals