Which of the following is not another way of describing the marginal propensity to consume?
A) MPC
B) The slope of the consumption function
C) The change in real consumption spending divided by the change in real disposable income
D) The amount by which real consumption spending rises when real disposable income increases by one dollar
E) Autonomous consumption spending.

Question

Quizplus · Accepted Answer

Autonomous consumption spending is not another way of describing the marginal propensity to consume. The MPC is a proportionate change in consumption spending relative to a change in disposable income, while autonomous consumption refers to the level of consumption that occurs even in the absence of income. The other choices, A, B, C, and D, are all alternative ways of describing the MPC.

Which of the Following Is Not Another Way of Describing