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.

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Definitions:

Agency Agreement

A legal contract creating a fiduciary relationship which empowers an agent to act on behalf of a principal in transactions.

Apparent Agency

A legal concept where a principal is liable for the acts of their agent, based on the appearance of authority the agent has been given, even if no actual authority was given.

Implied Agency

A form of agency relationship created by actions of the parties involved rather than a written agreement, suggesting one party can act on behalf of another.

Express Agency

An agency relationship created by an explicit written or oral agreement between the agent and the principal.