Option 1: 0 < MPC<1 -> This correctly represents that MPC is a positive fraction between 0 and 1.
Option 2: 0 < MPC>1 -> This notation is mathematically incorrect and contradictory.
Option 3: 0> MPC<1 -> This notation is mathematically incorrect and suggests MPC is negative.
Option 4: 0 > MPC>1 -> This notation is mathematically incorrect and contradictory.
Hence, **Option 1: 0 < MPC<1** -> The Marginal Propensity to Consume (MPC) represents the proportion of additional income that households spend on consumption. It must be positive because people increase consumption when income rises, and it must be less than 1 because people save at least some portion of additional income. For example, if MPC = 0.8, it means 80% of additional income is consumed and 20% is saved. The value always ranges between 0 and 1 (0 < MPC < 1). -> correct