Definition of only propensity to consume not a marginal propensity to – InterviewSolution

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1.	Definition of only propensity to consume not a marginal propensity to consume
Answer» omics, 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. Marginal propensity to consume is a component of Keynesian macroeconomic theory and is CALCULATED as the change in consumption divided by the change in INCOME. MPC is depicted by a consumption LINE, which is a sloped line CREATED by plotting the change in consumption on the vertical "y" axis and the change in income on the horizontal "x" axis.

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