The Marginal Propensity to Consume Is

question 135

Multiple Choice

The marginal propensity to consume is

• A)Total consumption in a given period divided by total disposable income.
• B)The percentage of total disposable income spent on consumption.
• C)That part of the average consumer dollar that goes to the purchase of final goods.
• D)The fraction of each additional dollar of disposable income spent on consumption.

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Definitions:

Drum

A cylindrical member that rotates and is part of a machine, such as in a drum brake where it provides the surface against which brake shoes press.

Brake Rotor

A component of disc brakes used in automotive and other applications, designed to provide a friction surface for the brake pads to slow or stop the vehicle.

Contact Area

The surface or region where two objects meet or press against each other, often critical for the transfer of force or heat.

Duo-servo Brakes

A type of drum brake system where each shoe acts as a servo to the other, enhancing braking efficiency, commonly found in heavier vehicles.