The Marginal Propensity to Consume Is

question 5

Multiple Choice

The marginal propensity to consume is:

• A) increasing if the marginal propensity to save is increasing.
• B) the proportion of total disposable income that the average family saves.
• C) the change in consumer spending divided by the change in aggregate disposable income.
• D) the change in consumer spending minus the change in aggregate disposable income.

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Definitions:

Carrying Value

The book value of assets and liabilities as recorded on the balance sheet, considering factors like amortization, depreciation, and impairment.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations based on its current income.

Net Income

The amount of profit left over, after all expenses and taxes have been subtracted from total revenue.

Tax Expense

Tax Expense is the total amount of taxes owed by an individual or corporation to the federal, state, and local government, reflecting in the financial statements of the period in which the tax is accrued.