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@ 5.5.2. Properties of MPC, The following are the main properties of MPC :, , , , (i) MPC is greater than zero but less than one : It is because with increase in, income, consumption expenditure also increases. But entire increase in income is not, spent, a part of it is saved. Thus MPC > 0 but MPC < ie, , (ii) MPC falls with increase in income : As the community becomes richer, it will, tend to consume a smaller percentage of each increment to its aggregate income., , (ii) MPC of the poor class is higher : In case of poor people, most of their basic, needs remain unfulfilled. With the result, additional ‘increment to income will lead to, greater consumption. :, , (tv) MPC is stable in the short run : This is, , because it depends upon psychological, factors which do not change in the short run.