The Change in Consumption Divided by a Change in Income

question 178

Multiple Choice

The change in consumption divided by a change in income is defined as:

• A) the marginal propensity to consume.
• B) autonomous consumption.
• C) the consumption function.
• D) Keynes' absolute income hypothesis.
• E) transitory consumption.

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Definitions:

Promissory Note

A financial instrument containing a written promise by one party to pay a definite sum of money to another party at a specified future date or on-demand.

Account Receivable

The amount customers are required to pay to a firm for goods and services already received but not yet paid for.

Payee

The party in a financial transaction who receives the payment.

Note Receivable

A written promise that a specified amount of money, plus potentially interest, will be paid by one party to another by a specific date.