In General, the Marginal Propensity to Spend Is the Change

question 6

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

---

Definitions:

Social Structures

The organized patterns of relationships and institutions that together form the basis of society.

Social Interaction

The process by which individuals act and react in relation to others, forming the foundation of social relationships and society.

Microstructures

Refers to the patterns or arrangements of social relations and interactions on a small scale, such as in groups or face-to-face interactions.

Postindustrial Revolution

Refers to the technology-driven shift from manufacturing to service industries and the consequences of that shift for virtually all human activities.