Question

What is the mathematical formula for the marginal propensity to consume?

Answer 1

`"MPC"=(Delta"C")/(Delta"Y")`

Explanation:

`"MPC"=(Delta"C")/(Delta"Y")`

`Delta"C"` is the change in consumption.
`Delta"Y"` is the change in income.

If consumption increases by `$1.60` for every `$2.00` increase in income, the marginal propensity to consume is

`1.6/2=0.8`