Question
Define marginal propensity to consume (mpc). Why marginal propensity to consume (mpc) remains between 0 and 1? What is the implication of a higher value of mpc?
Answer :
Word Count : 186
__________ _________ ______ ______ _____ _______ ________ ____.
___ ________ __________ ___ __________ __________ _____ _____ _________ ________ ___.
_________ ______ _______ ___ _________ _______ ________ _____ _____ _______ ___ ________.
______ ____ ____ ___ _________ ___ _________ __________ _______ ________.
____ ____ _____ _______ _____ ________ _____.
_______ ___ ___ _______ ___ __________.
__________ ________ ________ _____ ______ ______.
____ ___ _________ _____ _____.
______ ______ ____ _______ ________ ________ ___ ________ ______ _______ _____.
________ __________ ____ _______ _________ ___ _____ _______ __________.
____ _____ __________ __________ _____ ____ _______ _______ ___ ___ __________ _____.
_________ ___ _____ _______ _____.
___ __________ _____ __________ _____ ___ _____ ____ ____ ______.
____ ________.
Skip in 10
Marginal propensity to consume (MPC) refers to the proportion of an additional unit of income that a consumer spends on consumption rather than saving. It is calculated as the ratio of change in consumption to the change in income, expressed as MPC = ΔC / ΔY, where ΔC represents the change in consumption and ΔY represents the change in income. It
_________ _______ __________ _____ ________ __________ _____ ____ ________ _______ _____.__________ _________ ______ ______ _____ _______ ________ ____.
___ ________ __________ ___ __________ __________ _____ _____ _________ ________ ___.
_________ ______ _______ ___ _________ _______ ________ _____ _____ _______ ___ ________.
______ ____ ____ ___ _________ ___ _________ __________ _______ ________.
____ ____ _____ _______ _____ ________ _____.
_______ ___ ___ _______ ___ __________.
__________ ________ ________ _____ ______ ______.
____ ___ _________ _____ _____.
______ ______ ____ _______ ________ ________ ___ ________ ______ _______ _____.
________ __________ ____ _______ _________ ___ _____ _______ __________.
____ _____ __________ __________ _____ ____ _______ _______ ___ ___ __________ _____.
_________ ___ _____ _______ _____.
___ __________ _____ __________ _____ ___ _____ ____ ____ ______.
____ ________.
IGNOU ACADEMY
Your IGNOU journey, made easier.
- Solved Assignments
- Study Notes
- Guess Papers
- Question Papers
Continue Reading — It's Free
Sign in with Google to unlock more of this answer.
✓ Free access
✓ Unlock up to 60% of the answer
✓ No payment required
✓ Unlock up to 60% of the answer
✓ No payment required
Quick Google sign-in. No separate registration form.