The marginal propensity to consume refers to
A) the additional saving that occurs out of an additional dollar of disposable income.
B) the additional consumption expenditure that occurs out of an additional dollar of disposable income.
C) the additional consumption expenditure that occurs out of an additional dollar of investment.
D) total consumption expenditure divided by total disposable income.
Correct Answer:
Verified
Q51: If the consumption function lies below the
Q53: When the consumption function lies above the
Q54: As real disposable income increases, consumption expenditure
Q61: The saving function shows a _ relationship
Q62: What is the marginal propensity to consume?
A)
Q66: At a level of disposable income of
Q66: The marginal propensity to consume is equal
Q67: An increase in disposable income
A) shifts the
Q67: The value of the marginal propensity to
Q68: The marginal propensity to consume is
A) total
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