Write short note on Marginal Propensity to Consume. – InterviewSolution

1.	Write short note on Marginal Propensity to Consume.
Answer» The marginal PROPENSITY to consume (MPC) is equal to ΔC / ΔY, where ΔC is change in CONSUMPTION, and ΔY is change in income. If consumption INCREASES by 80 CENTS for each additional dollar of income, then MPC is equal to 0.8 / 1 = 0.8. Hope its Help you!!

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