The size of the Marginal Propensity to Consume (MPC) is assumed to be greater than zero but less than one. This means that when people receive additional income, they will spend a portion of it, but not all of it, which reflects the behavior of saving some of the income.
The size of the MPC is assumed to be
Multiple Choice
less than zero.
greater than one.
greater than zero but less than one.
two or more.
1 answer