In General, the Marginal Propensity to Spend Is the Change

question 89

Multiple Choice

In general, the marginal propensity to spend is the change in total desired expenditure induced by a change in
Whereas the marginal propensity to consume is the change in desired consumption expenditure induced by a change in . In the case of the simplest macro model with no government and no international trade, however, the marginal propensity to spend is the marginal propensity to consume.

• A) national income; disposable income; greater than
• B) national income; disposable income; equal to
• C) disposable income; national income; equal to
• D) disposable income; national income; greater than
• E) national income; disposable income; smaller than

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