The Marginal Propensity to Consume Is

question 19

Multiple Choice

The marginal propensity to consume is:

• A)expected to be between zero and one.
• B)equal to disposable income divided by consumption.
• C)the amount by which consumption changes when wealth increases by one dollar.
• D)normally assumed to increase as taxes increase.

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Definitions:

Property

Assets or rights owned by individuals or entities, which can be tangible or intangible, and are subject to ownership claims.

Lifetime

The period during which something is functional, active, or intended to last.

Fixture

An item of personal property that has been attached to or closely associated with real property in such a way that it becomes legally part of the real property.

Attachment

In general, the process of taking a person’s property under an appropriate judicial order by an appropriate officer of the court. Used for a variety of purposes, including the acquisition of jurisdiction over the property seized and the securing ofproperty that may be used to satisfy a debt.