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:

Cable Television

A system for delivering television programming to consumers via radio frequency signals transmitted through coaxial cables.

Efficient Level

A state of resource allocation where it is not possible to make someone better off without making someone else worse off.

Excludable

A characteristic of a good where it is possible to prevent people who have not paid for it from having access to it.

Rival

A term describing a good or resource that cannot be enjoyed by more than one individual or group without reducing its availability to others.