The Marginal Propensity to Consume Is Calculated as

question 46

Multiple Choice

The marginal propensity to consume is calculated as

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

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Definitions:

Parol Evidence Rule

A legal principle that prohibits the use of oral evidence to contradict or modify the terms of a written contract.

Condition Precedent

A condition in a contract that must be met before a party's obligation or right becomes effective.

Contract

A legally binding agreement between two or more parties that outlines the terms and conditions for the exchange of goods, services, or other forms of consideration.

Statute of Frauds

A legal principle requiring certain types of contracts to be in writing and duly signed by all parties involved, to be enforceable.