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प्रश्न
Define marginal propensity to consume (MPC).
व्याख्या
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उत्तर
The marginal propensity to consume may be defined as the ratio of the change in consumption to the change in income. Algebraically it may be expressed as follows:
MPC = `(ΔC)/(ΔY)`
Where, ∆C = Change in Consumption; ∆Y = Change in Income
MPC is positive but less than unity, `0 < (ΔC)/(ΔY) < 1`.
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