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Question : Which of the following about MPC is correct?

  1. MPC can be more than 1
  2. MPC of rich is more. 
  3. MPC falls with successive increase in income.

 

Option 1: Only 1
 

Option 2: Only 2&3
 

Option 3: Only 3
 

Option 4: 1,2&3
 


Team Careers360 5th Jan, 2024
Answer (1)
Team Careers360 15th Jan, 2024

Correct Answer: Only 3
 


Solution : The important points are-

  1. Value of MPC where is between zero and one.
  2. Value of poor is more than that of rich.
  3. MPC falls with successive increase in income.

Hence, Option C is correct.

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