Given that the <span>consumption function is C = $200 billion + 0.9y,
The</span><span> marginal propensity to consume (MPC) is a
metric that quantifies induced consumption, the concept that the
increase in personal consumer spending (consumption) occurs with an
increase in disposable income (income after taxes and transfers).
</span><span>The marginal propensity to consume (MPC) is equal to ΔC / ΔY, where ΔC is change in consumption, and ΔY is change in income. It reprecents the slope of the consumption function.
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