What is the marginal propensity to consume?
A) one minus the fraction of total disposable income that is saved.
B) the percentage of income that is not saved.
C) the percentage of income that is consumed.
D) the ratio of the change in consumption expenditure to the change in disposable income.
Correct Answer:
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Q69: A movement along the saving function occurs
Q70: At a level of disposable income of
Q71: The vertical distance between the 45- degree
Q72: Dissaving occurs when a household
A) spends less
Q73: When the consumption function lies above the
Q75: Saving rather than dissaving occurs at any
Q76: When disposable income equals consumption expenditure, then
A)
Q77: Where the consumption function crosses the 45°
Q78: An increase in disposable income shifts
A) both
Q79: As disposable income increases, there is a
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