The rate at which a consumer is willing to give up consumption in one period for additional consumption in another is known as ________.
A)the marginal propensity to save
B)the marginal propensity to consume
C)the marginal rate of substitution
D)the average propensity to consume

Question

Quizplus · Accepted Answer

The rate at which a consumer is willing to give up consumption in one period for additional consumption in another is known as the marginal rate of substitution. The other options (A, B, and D) refer to different concepts related to consumption and saving, but not specifically to the trade-off between present and future consumption.

The Rate at Which a Consumer Is Willing to Give