The marginal propensity to consume (MPC) is computed as the change in consumption divided by the change in disposable personal income. Therefore, the correct answer is:
consumption divided by the change in disposable personal income.
consumption divided by the change in savings
consumption divided by the change in disposable personal income
consumption divided by the change in GDP
none of the abov
1 answer
The marginal propensity to consume (MPC) is computed as the change in consumption divided by the change in disposable personal income. Therefore, the correct answer is:
consumption divided by the change in disposable personal income.