The value that marginal rate of propensity can take in consumption function.

0 < MPC < 1

The correct answer is Option (1) → 0 < MPC < 1

The Marginal Propensity to Consume (MPC) measures the fraction of additional income that a consumer spends on consumption.

MPC=ΔC / ΔY​

• If income increases by ₹1 and a part of it is consumed, then MPC will lie between 0 and 1.

• MPC = 0 means no extra consumption (all income saved).

• MPC = 1 means entire additional income is consumed.

• Therefore, normally: 0<MPC<1