The Marginal Propensity to Consume Is

question 12

Multiple Choice

The marginal propensity to consume is

• A) the rate at which consumption increases as GDP increases.
• B) the rate at which consumption increases as disposable income increases.
• C) equal to 1 divided by the slope of the consumption function.
• D) the rate at which tax revenue climbs as consumption increases.
• E) none of the above.

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