Marginal propensity to consume (MPC) is the fraction of extra income that a household spends on consumption.

Name: Marginal propensity to consume (MPC) is the fraction of extra income that a household spends on consumption.
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Quizplus · Accepted Answer

Marginal propensity to consume (MPC) is defined as the increase in consumer spending resulting from an increase in disposable income. It represents the fraction of additional income that a household will spend on consumption goods and services. Therefore, statement A is true.

Marginal Propensity to Consume (MPC) Is the Fraction of Extra