The Marginal Propensity to Consume Is Best Defined as

question 22

Multiple Choice

The marginal propensity to consume is best defined as

• A)the change in consumption expenditure caused by an increase in the interest rate.
• B)the change in consumption expenditure caused by a one-unit increase in income.
• C)the change in real GDP caused by a change in consumption expenditure.
• D)the change in consumption expenditure caused by a change in some other spending category.
• E)total consumption divided by total income.

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Definitions:

Growth Rate

The rate at which the amount, value, or size of something increases over a particular period of time.

Total Fertility Rate

The average number of children that would be born to a woman over her lifetime, given current age-specific fertility rates.

Demographic Data

Information collected about populations, such as age, race, gender, income, and education, used to identify and analyze population trends.

Mexico

A country in the southern portion of North America, known for its rich cultural heritage, diverse landscapes, and complex history.