The marginal propensity to consume is

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

This answer correctly explains the economic concept. Economics studies how people make choices about limited resources.

The other options describe different economic ideas or situations. They don’t fit what this question asks.

Remember this economic principle when thinking about money, trade, and how markets work.