Anonymous asked in Social ScienceEconomics · 1 month ago

If consumption has increased by more than disposable income doesn't it mean that MPC is more than one?

Why does it say that MPC cannot be more than one. If in Economics there is an idea of autonomous consumption then why can't MPC be more than one?

1 Answer

  • Oiy
    Lv 6
    1 month ago

    No, it means you use your saving or credit for your over consumption.

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