The marginal propensity to consume is defined as
A)consumption divided by disposable income.
B)disposable income divided by consumption.
C)the change in consumption divided by the change in disposable income.
D)the change in disposable income divided by the change in consumption.

Question

Quizplus · Accepted Answer

The marginal propensity to consume (MPC) is defined as the change in consumption divided by the change in disposable income. It measures the increase in consumer spending when disposable income increases.

The Marginal Propensity to Consume Is Defined as