The marginal propensity to consume is best defined as
A) the change in consumption expenditure caused by an increase in the interest rate.
B) the change in consumption expenditure caused by a one-unit increase in income.
C) the change in real GDP caused by a change in consumption expenditure.
D) the change in consumption expenditure caused by a change in some other spending category.
E) total consumption divided by total income.
Correct Answer:
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Q61: Disposable income is the income that households
A)save
Q62: The consumption function for the whole economy
A)looks
Q63: If the marginal propensity to consume declines,
Q64: The notion of the consumption function originated
Q65: The relationship describing how consumption depends on
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