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    Question

    The marginal propensity to consume, lies between

    _____.
    A 0 to 1 Correct Answer Incorrect Answer
    B -1 to 1 Correct Answer Incorrect Answer
    C 0 to Infinity Correct Answer Incorrect Answer
    D 1 to 10 Correct Answer Incorrect Answer

    Solution

    The Marginal Propensity to Consume (MPC) refers to the fraction of additional income that is spent on consumption. It lies between 0 and 1, meaning people either save or spend a portion of their additional income.

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