The value of C_y, the MPC, A) is generally less than 0. B) is generally greater than 1. C) is usually between 0 and 1. D) generally increases as income increases.

Name: The value of C y , the MPC, A) is generally less than 0. B) is generally greater than 1. C) is usually between 0 and 1. D) generally increases as income increases.
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Question

Quizplus · Accepted Answer

The Marginal Propensity to Consume (MPC) is usually between 0 and 1, indicating the proportion of an additional unit of income that is spent on consumption.

The Value of Cy, the MPC

The Value of C_y, the MPC