-Refer to Exhibit 10-3.The marginal propensity to consume (MPC)is

Name: -Refer to Exhibit 10-3.The marginal propensity to consume (MPC)is
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The marginal propensity to consume (MPC) is calculated as the change in consumption divided by the change in income. If the exhibit showed, for example, that when income increases by $100, consumption increases by $80, the MPC would be 0.80 ($80/$100). This calculation reflects the proportion of additional income that is spent on consumption.