The marginal propensity to consume is

JAMB Economics 2023 163 views
Source: JAMB · 2023

The marginal propensity to consume is

  1. ∆C/∆Y
  2. Coefficient c in the equation C = C + cYd
  3. The slope of the consumption function
  4. Options A, B and C ✓
Explanation

The marginal propensity to consume is the extra consumption from each extra naira of income. It is written ∆C/∆Y. It is the coefficient c in the consumption function, and it is also the slope of that function.

All three statements describe the same thing, so all three are correct.

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