The marginal propensity to consume measures the ratio of the:
A) average amount of our income that we spend.
B) average amount of our savings that we spend.
C) change in consumer spending to a change in money holdings.
D) change in consumer spending to a change in interest rates.
E) change in consumer spending to a change in income.
Correct Answer:
Verified
Q14: As the marginal propensity to consume (MPC)
Q43: Exhibit 15-1 Disposable income and consumption data
Q45: As the marginal propensity to consume (MPC)
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Q49: The marginal propensity to consume is:
A) the
Q50: The ratio of the change in GDP
Q51: If the marginal propensity to save (MPS)
Q52: If the marginal propensity to consume (MPC)
Q54: If the marginal propensity to save (MPS)
Q57: The formula to compute the spending multiplier
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