The MPC can be defined as that fraction of a: Select one: ? a. given total income that is not consumed. O b. change in income that is spent. O c. given total income that is consumed. o d. change in income that is not spent

Respuesta :

Answer:

The correct answer is B

Explanation:

MPC stands for Marginal Propensity to Consume is the term which is defined as the proportion of the income which increases or rises when spent on consumption.

It is the most important determinant of the Keynesian multiplier, which states the effect of the increased investment or the government spending.

Therefore, MPC could be described as the change in the income which is spent or used up.