The marginal propensity to consume can be found by dividing

The marginal propensity to consume can be found by dividing Multiple Choice

  • Total consumption by the number of people consuming.
  • Total consumption by total saving.
  • Disposable income by total consumption.
  • The change in total consumption by the change in disposable income.

Answer

Answer Option 4 The change in total consumption by the change in disposable income.

marginal propensity to consume is a portion of consumption of one more dollar of income so it is the measure change in consumption because of change in income

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