Marginal propensity to consume is:

CA Foundation · Business Economics · PYQS · January 2025
Marginal propensity to consume is:
(A) A. zero when the income is zero.
(B) B. always less than unity but greater than zero.
(C) C. greater than one when income rises.
(D) D. it does not depend on income.

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. always less than unity but greater than zero.

Topics: Determination of National Income

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