The marginal propensity to consume refers to
A) the additional consumption expenditure that occurs out of an additional dollar of disposable income.
B) total consumption expenditure divided by total disposable income.
C) the additional consumption expenditure that occurs out of an additional dollar of investment.
D) the additional saving that occurs out of an additional dollar of disposable income.
Correct Answer:
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Q66: A movement along the saving function occurs
Q67: At a level of disposable income of
Q68: As disposable income increases, there is a
Q69: The marginal propensity to consume measures
A) the
Q70: An increase in disposable income
A) shifts the
Q72: If consumption expenditures for a household increase
Q73: The value of the marginal propensity to
Q74: The marginal propensity to consume is equal
Q75: The size of the marginal propensity to
Q76: An increase in disposable income shifts
A) both
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