The change in consumption divided by the change in income is equal to
A) the MPC.
B) the MPS.
C) 1 - MPC.
D) MPC + MPS.

Name: The change in consumption divided by the change in income is equal to A) the MPC. B) the MPS. C) 1 - MPC. D) MPC + MPS.
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Question

Quizplus · Accepted Answer

The change in consumption divided by the change in income is known as the marginal propensity to consume (MPC), which represents the fraction of additional income that is spent on consumption. Therefore, choice A is the correct answer.

The Change in Consumption Divided by the Change in Income