The MPC isA) .25B) .50C) .75D) 1.0

Question

Hannah Caldwell · Accepted Answer

Final Answer : C, Explanation :  The Marginal Propensity to Consume (MPC) is typically less than 1.0, as it represents the fraction of additional income that is spent on consumption. An MPC of 0.75 is a common assumption in economic models.

The MPC is

A) .25
B) .50
C) .75
D) 1.0

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