The marginal propensity to consume is the increase in consumer spending when _____ increase(s) by $1.

Name: The marginal propensity to consume is the increase in consumer spending when _____ increase(s) by $1.
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Question

Quizplus · Accepted Answer

The marginal propensity to consume measures the change in consumer spending in response to a change in disposable income. Therefore, the correct answer is C, disposable income. The other options can influence consumer spending, but not directly in terms of a $1 increase.

The Marginal Propensity to Consume Is the Increase in Consumer