What would be the slope of the consumption schedule or line for a given economy?

Answer 1

The slope of the consumption schedule, or line, in an economy represents the marginal propensity to consume (MPC), which measures the change in consumption resulting from a change in income. A steeper slope indicates a higher MPC, meaning consumers are likely to spend a larger portion of any additional income, while a flatter slope suggests a lower MPC, with consumers saving more of their additional income. This slope is crucial for understanding how changes in income levels affect overall consumption and economic activity.