The acronym MPC stands for:
A) marginal production cost.
B) marginal propensity to consume.
C) marginally perfect consumption.
D) macro possibility curve.

Question

Quizplus · Accepted Answer

MPC stands for marginal propensity to consume, which is the increase in consumer spending when disposable income increases by one unit. It is a key concept in Keynesian economics and is widely used in macroeconomic analysis. A, C, and D are not correct definitions of MPC.

The Acronym MPC Stands For