The MPC for an economy is

Question

Multiple Choice
the slope of the consumption schedule or line.
the slope of the savings schedule or line.
1 divided by the slope of the consumption schedule or line.
1 divided by the slope of the savings schedule or line.

Answer 1

The correct answer is: the slope of the consumption schedule or line.

MPC, or Marginal Propensity to Consume, measures the change in consumption resulting from a change in disposable income. It is represented as the slope of the consumption function.