The Marginal Propensity to Consume (MPC)

Multiple Choice

The marginal propensity to consume (MPC)

A) shows how much real disposable income changes when consumption falls.
B) is greater than 1 only if the marginal propensity to save is greater than 1.
C) shows how much of an extra dollar of real disposable income is spent.
D) shows the percentage of real disposable income consumed at each level of income.