Marginal propensity to consume...it is not fixed.
if you found my answer wrong then pls correct me.

Minimum Value of MPC:
Understanding MPC
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MPC stands for Marginal Propensity to Consume, which is the proportion of an increase in income that is spent on consumption rather than saved. It is an important concept in economics as it helps to determine how changes in income affect consumption patterns.
Factors Affecting MPC
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The MPC can range from 0 to 1, where 0 indicates that no additional income is spent on consumption, and 1 indicates that all additional income is spent on consumption. The minimum value of MPC can be influenced by several factors:
1. Income Level: Generally, individuals with lower income levels tend to have a higher MPC as they are more likely to spend additional income on basic necessities.
2. Savings Behavior: If individuals have a strong preference for saving rather than spending, the MPC will be lower as less income is devoted to consumption.
3. Economic Conditions: During times of economic uncertainty or recession, individuals may increase their savings and reduce their consumption, leading to a lower MPC.
Minimum Value of MPC
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The minimum value of MPC is theoretically 0, meaning that individuals do not spend any additional income on consumption. This situation would occur if individuals have a strong preference for saving or if they prioritize long-term financial goals over immediate consumption.
However, in practical terms, it is rare to observe an MPC of exactly 0 as individuals typically allocate at least some portion of their income to consumption. The minimum value of MPC is more commonly observed to be close to 0 rather than exactly 0.
In conclusion, the minimum value of MPC is influenced by various factors such as income level, savings behavior, and economic conditions. While theoretically it can be 0, in reality, it is more likely to be close to 0 due to the complex interplay of individual preferences and economic circumstances.