The Marginal Propensity to Consume Is Defined to Be

question 6

Multiple Choice

The marginal propensity to consume is defined to be

• A)the change in desired consumption divided by the change in saving.
• B)the change in desired consumption divided by total disposable income.
• C)the change in desired consumption divided by the change in disposable income.
• D)total desired consumption divided by total disposable income.
• E)total desired consumption divided by the change in disposable income.

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Definitions:

Income Distribution

How total earnings are distributed across individuals or households within an economy.

Equal Slices

A method of dividing or allocating resources, goods, or profits evenly among all parties or members.

Corporate Stock Holdings

The shares of a corporation held by an individual, group, or another corporation, representing ownership interests.