2000EconomicsMedium
In the equation C = a + bY, which describes the aggregate consumption function ‘b’ stands for?
AThe average consumption level
BThe amount of income when consumption is zero
CThe marginal propensity to consume.
DThe amount of consumption when income is zero
Correct answer
C. The marginal propensity to consume.
Explanation
The correct answer is The marginal propensity to consume..