JAMB - Economics (2023 - No. 4)

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