The Increase in Aggregate Planned Expenditures Divided by the Change

question 52

Multiple Choice

The increase in aggregate planned expenditures divided by the change in national income that brought it about is called the

• A)average propensity to consume.
• B)average propensity to save.
• C)marginal propensity to spend.
• D)marginal propensity to save.
• E)marginal propensity to consume.

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Definitions:

Quantity Demanded

The overall volume of a good or service that consumers intend and can afford to buy within a specific period at a particular price.

Complementary Good

A product or service that is typically used together with another product, such that an increase in demand for one leads to an increase in demand for the other.

Change in Demand

A change in the quantity demanded of a good or service at at least one price that is caused by factors other than a change in the price of that good or service.

Technology

The application of scientific knowledge for practical purposes, especially in industry, which includes machinery, equipment, methods, and processes.