The marginal propensity to consume is

Question

Quizplus · Accepted Answer

The marginal propensity to consume (MPC) is defined as the change in consumption that results from a one-unit change in income. Therefore, it is represented by the change in consumption divided by the change in income, as stated in choice C. Choice A is incorrect because it represents the average propensity to consume (APC), which is consumption divided by income. Choice B is incomplete because it does not specify what the change in consumption is being measured in relation to. Choice D is incorrect because the MPC is, in fact, affected by changes in income. Therefore, the correct answer is C.

The Marginal Propensity to Consume Is