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

question 35

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 income.
• C)consumption divided by the change in GDP.
• D)None of these.

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Definitions:

U.S. Investments

Funds or resources allocated by individuals, corporations, or the government within the United States in hopes of generating positive returns or economic growth.

Importer

An individual or organization that buys goods from other countries for resale or use in the domestic market.

Yen Purchase

The act of buying yen, Japan's currency, which can involve exchanging another currency for yen in foreign exchange markets.

Exchange Rate

The value of one currency for the purpose of conversion to another, indicating how much of one currency can be exchanged for another currency.