Question

The marginal propensity to consume (MPC) refers to the:

A rate of change of consumption as income changes Correct Answer Incorrect Answer
B savings per unit of income Correct Answer Incorrect Answer
C consumption per unit of income Correct Answer Incorrect Answer
D change in savings per unit change in income Correct Answer Incorrect Answer

Solution

In economics, the marginal propensity to consume (MPC) is defined as the proportion of an aggregate raise in pay that a consumer spends on the consumption of goods and services, as opposed to saving it.

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