The MPC is
A) the change in consumption divided by the change in income.
B) consumption divided by income.
C) the change in consumption divided by the change in saving.
D) the change in saving divided by the change in income.

Question

Quizplus · Accepted Answer

The MPC (marginal propensity to consume) represents the change in consumption due to a change in income. Therefore, it is calculated by dividing the change in consumption by the change in income, making choice A the correct answer.

The MPC Is