Answer to Question #134022 in Macroeconomics for Valerie

Question #134022
Which of the following statements is correct about the marginal propensity to consume (MPC)?
A. MPC – marginal propensity to save = 1
B. MPC is equal to or greater than one at all income levels.
C. MPC is greater than zero but less than one.
D. MPC may be negative.
1
Expert's answer
2020-09-21T09:50:33-0400

(C) MPC is greater then 0 and less then 1. this is property of MPC that is lies between 0 to 1

so option C is correct


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