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

Question

Quizplus · Accepted Answer

The marginal propensity to consume (MPC) is the change in consumption divided by the change in income. Autonomous consumption is consumption that does not depend on income, induced consumption is consumption that depends on income, the marginal propensity to save is the change in saving divided by the change in income, and the net national product is the total value of goods and services produced in a country in a year.

1 - MPC Equals