Question

what happens if there is a rise in the marginal propensity to consume MPC ​

Answer 1

Answer:

A change in the marginal propensity to consume will change the slope of the consumption function. An increase in the MPC steepens the consumption function; a decrease in the MPC flattens it..

Answer 2

Answer:

The higher the MPC, the higher the multiplier—the more the increase in consumption from the increase in investment; so, if economists can estimate the MPC, then they can use it to estimate the total impact of a prospective increase in incomes.

Explanation: