The marginal propensity to consume equals
A) consumption expenditure divided by the change in disposable income.
B) the change in autonomous consumption divided by the change in induced consumption.
C) consumption expenditure divided by disposable income.
D) the change in consumption expenditure divided by the change in disposable income.
E) the change in consumption expenditure divided by disposable income.

Question

Quizplus · Accepted Answer

The marginal propensity to consume (MPC) is defined as the ratio of the change in consumption expenditure to the change in disposable income, which is accurately described in option D.

The Marginal Propensity to Consume Equals