The fraction of a change in real disposable income that is spent is referred to as the
A) APC.
B) MPC.
C) MPS.
D) APS.

Question

Quizplus · Accepted Answer

The fraction of a change in real disposable income that is spent is referred to as the marginal propensity to consume (MPC). Option A refers to the average propensity to consume (APC), option C refers to the marginal propensity to save (MPS), and option D refers to the average propensity to save (APS).

The Fraction of a Change in Real Disposable Income That