If consumption is defined as C = 2,400 + 0.9Y,then the marginal propensity to consume is 0.9.

Name: If consumption is defined as C = 2,400 + 0.9Y,then the marginal propensity to consume is 0.9.
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The marginal propensity to consume (MPC) is the change in consumption divided by the change in income. In this case, the MPC is 0.9 because the coefficient of Y (income) is 0.9 in the consumption function C = 2,400 + 0.9Y.

If Consumption Is Defined as C = 2,400 + 0