Question

The MPC for an economy is
A) the slope of the savings schedule or line.
B) 1 divided by the slope of the savings schedule or line.
C) the slope of the consumption schedule or line.
D) 1 divided by the slope of the consumption schedule or line.

Answer 1

heya mate
The answer of ur question is


♢ The MPC for an economy is the slope of the consumption schedule or line



hope it helps

Answer 2

Concept:

The consumption function shows the positive relationship between the consumption and disposable income.

Given:

The MPC for an economy is the slope of the savings schedule or line, 1 divided by the slope of the savings schedule or line, the slope of the consumption schedule or line and 1 divided by the slope of the consumption schedule or line.
To find:

The MPC for an economy is to find out.

Solution:

The marginal propensity to consume is the ratio of change in consumption to the change in disposable income. It is the difference between one and marginal propensity to save.