The Fraction of a Change in Income That Is Consumed

question 212

Multiple Choice

The fraction of a change in income that is consumed or spent is called

• A) the marginal propensity of income.
• B) the marginal propensity to save.
• C) the marginal propensity to consume.
• D) average consumption.

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Definitions:

Prohibited

Forbidden by law, rule, or other authority.

Court

A governmental institution authorized to resolve legal disputes, make judgments, and enforce law.

Incidental Beneficiary

A third party who benefits from a contract between two other parties, without being specifically intended to benefit by those parties.

Intended Beneficiary

A person or entity for whom a contract is specifically made to benefit, having the legal right to enforce the contract if not fulfilled.