Advertisements
Advertisements
Question
Marginal Propensity to Consume (MPC) is defined as ______.
Options
Total consumption divided by total income
Change in income divided by change in consumption
Change in consumption divided by change in income
Total income minus total consumption
MCQ
Fill in the Blanks
Advertisements
Solution
Marginal Propensity to Consume (MPC) is defined as change in consumption divided by change in income.
Explanation:
MPC measures how much consumption changes when income changes, so it is ΔC divided by ΔY.
shaalaa.com
Is there an error in this question or solution?
