The Change in Consumption Divided by the Change in Disposable

question 49

Multiple Choice

The change in consumption divided by the change in disposable income is called the

• A)marginal propensity to consume.
• B)probability of spending.
• C)the marginal product.
• D)marginal aggregate spending.

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Definitions:

Equilibrium Level Of Saving

The point at which the amount households save equals the amount they invest, resulting in a balance within the economy's financial resources.

U.S. Government Debt

The total amount of money that the United States federal government owes to creditors, including both public debt and intra-governmental obligations.

Budget Deficit

An economic situation where a government's expenditures exceed its revenue over a specified period of time, leading to borrowing or money printing.

Deficit Financing

The practice of funding government spending by borrowing rather than from taxation, leading to a budget deficit.