The marginal propensity to consume is the
A) fraction of a change in disposable income that is spent on consumption.
B) fraction of the first dollar of disposable income received that is consumed.
C) fraction of the first dollar of disposable income received that is saved.
D) total amount of consumption divided by the total amount of disposable income.
E) fraction of the last dollar of disposable income received that is saved.
Correct Answer:
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Q5: The marginal propensity to save is calculated
Q6: Disposable income is
A)used for consumption only.
B)aggregate income
Q7: Use the figure below to answer the
Q8: If the marginal propensity to consume is
Q9: The marginal propensity to consume is calculated
Q11: A household
A)consumes, saves, or pays taxes out
Q12: If a household's disposable income increases from
Q13: Use the figure below to answer the
Q14: If the marginal propensity to save is
Q15: The marginal propensity to save
A)is greater than
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