Question

The slope of consumption function is known as

Answer 1

Answer:

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Answer 2

Answer:

Change in Consumption due to change in disposable income is called marginal propensity to consume (slope of consumption function).

• By dividing the increase in Consumption with increase in income,we get Marginal propensity to consume.

MPU =∆C/∆Y = Change in Consumption expenditure/Change in income

here ,

MPC= marginal propensity to consume

y = change in income

c = change in Consumption expenditure