The Portion of Additional Income That Is Spent on Consumption

question 161

Multiple Choice

The portion of additional income that is spent on consumption is

• A) average propensity to consume APC).
• B) marginal propensity to consume MPC).
• C) marginal propensity to save MPS).
• D) average propensity to save APS).
• E) 1 minus marginal propensity to consume 1 - MPC).

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Definitions:

Amygdala

A part of the brain involved in processing emotions, especially fear and pleasure.

Cerebellum

A region of the brain that plays an important role in motor control, and it may also be involved in some cognitive functions.

Left Temporal Lobe

An area of the brain on the left side involved in understanding language, memory, and the integration of sensory input.

Wernicke's Area

A region in the brain important for language comprehension, located in the posterior section of the superior temporal gyrus of the temporal lobe.