The marginal propensity to consume (mpc) is the:
a. amount by which disposable income increases when consumption increases by $1.
b. amount by which consumption increases when disposable income increases by $1.
c. percentage by which consumption increases when disposable income increases by 1 percent.
d. percentage by which disposable income increases when consumption increases by 1 percent.

The marginal propensity to consume (mpc) is the percentage by which consumption increases when disposable income increases by 1 percent.

Explanation: The MPC measures the porcentege of the increase in your earnings that you destinates to consumption.

For instance if you earn $100 and have and increase in your income of $1 you can spend or save that extra $1 or a part of it. The MPC measures what part of that $1 you spend. If you spend $0,80 your MPC is 80% because you spent $0,80 and you save $0,20.

answer; i believe the correct answer is (180)

income statement is prepared in order to show the profits and loss of a business. in order to prepare the income statement she should collect all the income and expenses of the product with the cost of production.