The marginal propensity to consume is
A) another name for consumption expenditure.
B) disposable income minus consumption expenditure.
C) the change in disposable income minus the change in consumption expenditure.
D) the change in consumption expenditure divided by the change in disposable income that brought it about.
E) another name for autonomous consumption expenditure.

Question

Quizplus · Accepted Answer

The marginal propensity to consume (MPC) is the ratio of the change in consumption expenditure (∆C) to the change in disposable income (∆Y) that brought it about. Therefore, choice D is the correct answer.

The Marginal Propensity to Consume Is