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The marginal propensity to consume is

...

The marginal propensity to consume is

A.

Options A, B and C

B.

ΔC/ΔY

C.

The slope of the consumption function

D.

Coefficient c in the equation C = C + cYd

Correct answer is A

The marginal propensity to consume is the ratio of change in consumption to change in income. It is mathematically represented as: MPC = ∆C/∆Y and also the consumption function is represented as C = a +bYd ( C = C + cYd) where the b(c) is the MPC which ranges between 0 and 1. The slope of the consumption function is b or MPC.