The Marginal Propensity to Consume Is Defined as the

question 37

Multiple Choice

The marginal propensity to consume is defined as the

• A) fraction of total income not spent on consumption.
• B) proportion of any change in income that is spent on consumption.
• C) fraction of total income spent on consumption.
• D) fraction of a change in income that is saved.

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Definitions:

Lasting Physical Change

Lasting physical change denotes a permanent alteration in the physical state or appearance of an object or organism.

Recency Effect

The inclination to recall the latest information presented most effectively.

First Day

Often refers to the initial time something starts or takes place, such as the first day of school, work, or any event marking a beginning.

Professor

An academic position at a college or university, engaged in teaching and often in research, and typically holding advanced degrees.