MPC is the slope of which of the following options?

The correct answer is Option 2: Consumption function

The consumption function shows the relationship between consumption and income. The slope of this function represents how consumption changes with a change in income, which is the Marginal Propensity to Consume (MPC).

Marginal propensity to consume refers to the ratio between change in consumption to change in income.

MPC = \(\frac{ ΔC}{ΔY}\)

C = c + bY, where b denotes the MPC