The change in total spending from additional income is
A)MPC.
B)MPS.
C)APC.
D)APS.

Question

Quizplus · Accepted Answer

The change in total spending from additional income is known as the marginal propensity to consume (MPC). Therefore, choice A is the correct answer. MPS (marginal propensity to save) refers to the change in total saving from additional income. APC (average propensity to consume) is the proportion of total income that is spent on consumption, and APS (average propensity to save) is the proportion of total income that is saved.

The Change in Total Spending from Additional Income Is