When drawn against current income,the slope of the C? ??? ? ?? ??? ? ? curve is equal to the marginal
A) product of capital.
B) product of labor.
C) propensity to consume.
D) propensity to save.

Question

Quizplus · Accepted Answer

The slope of the consumption curve (C curve) is equal to the marginal propensity to consume (MPC), which is the change in consumption that occurs with a change in income. Therefore, when drawn against current income, the slope of the C curve is equal to the MPC, which represents the portion of additional income that is spent on consumption.

When Drawn Against Current Income,the Slope of the C