The Marginal Propensity to Consume Is Defined as the

question 37

Multiple Choice

The marginal propensity to consume is defined as the

• A) fraction of total income not spent on consumption.
• B) proportion of any change in income that is spent on consumption.
• C) fraction of total income spent on consumption.
• D) fraction of a change in income that is saved.

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Definitions:

Pavlov

A Russian physiologist best known for his work in classical conditioning, demonstrating the learned connection between stimuli and responses.

Conditioned Stimulus

An initially neutral signal that, upon being paired with an unconditioned stimulus, ultimately elicits a conditioned response.

Unconditioned Response

An automatic, natural reaction to a stimulus that occurs without any prior learning or conditioning.

Lightning

A natural electrical discharge of very short duration and high voltage that occurs between a cloud and the ground or within a cloud.