The long-run marginal propensity to consume (mpc) is
A) larger than the short-run mpc
B) slightly smaller than the short-run mpc
C) about half the size of the short-run mpc
D) identical to the short-run mpc
E) always equal to 1

Question

The long-run marginal propensity to consume (mpc) is
A)	larger than the short-run mpc
B)	slightly smaller than the short-run mpc
C) 	about half the size of the short-run mpc
D) 	identical to the short-run mpc
E) 	always equal to 1

Quizplus · Accepted Answer

In the long run, consumers adjust their consumption habits more fully to changes in income, leading to a larger marginal propensity to consume compared to the short run.

The Long-Run Marginal Propensity to Consume (Mpc) Is