Figure 8-1

-The slope of the fitted line that shows the relationship between consumer spending and disposable income is the
A)marginal propensity to save.
B)probability of expending.
C)marginal income spend.
D)marginal propensity to consume.

Question

Figure 8-1
​ 
-The slope of the fitted line that shows the relationship between consumer spending and disposable income is the
A)marginal propensity to save. 
B)probability of expending. 
C)marginal income spend. 
D)marginal propensity to consume.

Quizplus · Accepted Answer

The slope of the fitted line that shows the relationship between consumer spending and disposable income is referred to as the marginal propensity to consume (MPC), which represents the change in consumer spending as a result of a unit change in disposable income. This answer is the best choice as it reflects the correct economic term for this slope, given the context provided in the question.

Figure 8-1 ​

Figure 8-1