The Greater Is the Marginal Propensity to Consume

question 192

Multiple Choice

The greater is the marginal propensity to consume:

• A)the smaller is the marginal propensity to save.
• B)the higher is the interest rate.
• C)the lower is the average propensity to consume.
• D)the lower is the price level.

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Definitions:

Gross Returns

Total revenue generated by an investment before any deductions for expenses or taxes.

Non-Profit Charity

An organization dedicated to furthering a particular social cause or advocating for a shared point of view, without profit as its primary motive.

Commission

A fee or percentage of a transaction paid to an agent for facilitating or conducting a sale or service.

Misapplication

The improper or dishonest use of funds, resources, or assets for purposes other than those intended.