The Marginal Propensity to Consume (MPC)is Computed as the Change

question 213

Multiple Choice

The marginal propensity to consume (MPC) is computed as the change in:

• A)consumption divided by the change in savings.
• B)consumption divided by the change in disposable personal income.
• C)consumption divided by the change in GDP.
• D)None of these.

---

Definitions:

Positively Correlated

A relationship between two variables where an increase in one variable is associated with an increase in the other.

Personality Traits

Consistent patterns of thought, emotion, and behavior that uniquely define an individual.

Extraversion

A personality trait characterized by sociability, assertiveness, and an energetic attitude toward the social world.

Openness

A trait dimension of personality characterized by a willingness to try new experiences, engage with different viewpoints, and express creativity.