In general, the Marginal Propensity to Consume (MPC) is greater than the Average Propensity to Consume (APC). The MPC is the proportion of each additional dollar of income that is spent on consumption, while the APC is the total consumption expenditure divided by total income. Since the MPC only considers the additional dollar of income, it is typically higher than the APC, which takes into account total consumption and total income.
