An increase in the marginal propensity to consume will

Name: An increase in the marginal propensity to consume will
Brand: Quizplus
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Question

Quizplus · Accepted Answer

An increase in the marginal propensity to consume (MPC) means that for every extra dollar of income, consumers will spend more, and save less. This leads to a steeper consumption function, as the increase in consumption will be greater for each level of income. Therefore, option B is the correct answer.

An Increase in the Marginal Propensity to Consume Will