The MPC can be defined as the:
A) Change in consumption divided by the change in income
B) Change in income divided by the change in consumption
C) Ratio of income to saving
D) Ratio of saving to consumption

Question

Quizplus · Accepted Answer

The MPC (marginal propensity to consume) is defined as the change in consumption divided by the change in income. This means that for every extra dollar of income, a certain percentage is spent on consumption.

The MPC Can Be Defined as The