Marginal prospensity to consume can be calculated as :
Answer & explanation
Correct answer: option 3
The correct answer is option (3) : $\frac{ΔC}{ΔY}$
MPC represents the proportion of an additional increment of income that a consumer spends on consumption. It can be calculated as the change in consumption divided by the change in income.
i.e $\frac{ΔC}{ΔY}$