If the Marginal Propensity to Consume (MPC)is Equal to 0

Multiple Choice

If the marginal propensity to consume (MPC) is equal to 0.9, an increase in household income causes desired consumption expenditure to

A) rise by less than the full increase in income.
B) rise by more than the increase in income.
C) remain constant, because the MPC is also constant.
D) fall, as an increase in income will increase saving.
E) rise by the full increase in income.