Fill in the blanks with appropriate alternatives given in the bracket.
Marginal consumption function is always ________.
3.more than one
4.less than one
Marginal consumption function is always less than one.
The two aspects of propensity to consume is average propensity to consume and marginal propensity to consume. The marginal consumption function is the ratio of change in aggregate consuption to the change in aggregate income level. It is always less than one.
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- Total Utility and Marginal Utility