In general we can note that households with lower wealth tend to have a ____ MPC relative to wealthier households.
A) lower
B) higher
C) similar
D) exactly equivalent

Question

Quizplus · Accepted Answer

Households with lower wealth typically have a higher marginal propensity to consume (MPC) because they are more likely to spend additional income on necessities, whereas wealthier households are more likely to save additional income.

In General We Can Note That Households with Lower Wealth