The Marginal Propensity to Consume Is

question 19

Multiple Choice

The marginal propensity to consume is

• A)That part of the average consumer dollar that goes to saving.
• B)The same as the spending multiplier.
• C)The change in consumption divided by the change in disposable income.
• D)Always equal to 1.

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Definitions:

Retinal Disparity

A binocular cue for perceiving depth: By comparing images from the retinas in the two eyes, the brain computes distance—the greater the disparity (difference) between the two images, the closer the object.

Sensation

The process by which our sensory receptors and nervous system receive and represent stimulus energies from our environment.

Nervous System

A complex network of nerves and cells that carry messages to and from the brain and spinal cord to various parts of the body.

Stimulus Energies

The physical or chemical forms of energy, such as light, sound, or touch, that can be detected and interpreted by sensory systems.