The slope of the consumption function represents _________.

CA Foundation · Business Economics · PYQS · September 2025
The slope of the consumption function represents _________.
(A) A. Average Propensity to Save (APS).
(B) B. Marginal Propensity to Consume (MPC).
(C) C. Marginal Propensity to Save (MPS).
(D) D. Average Propensity to Consume (APC).

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Marginal Propensity to Consume (MPC).

Topics: Determination of National Income

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