The Marginal Propensity to Consume Measures

question 183

Multiple Choice

The marginal propensity to consume measures

• A) how much of a given level of disposable income is consumed.
• B) what percentage of disposable income goes to saving.
• C) how much consumption expenditure occurs at the equilibrium level of income.
• D) the fraction of a change in disposable income that is spent on consumption expenditure.

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Definitions:

Kurt Lewin

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