The Marginal Propensity to Consume Is

question 99

Multiple Choice

The marginal propensity to consume is:

• A)the relationship between a change in consumption and a change in income.
• B)the relationship between a change in consumption and a change in saving.
• C)the relationship between changes in consumption and changes in net wealth.
• D)the ratio of income to consumption at any given level of income.
• E)the ratio of total consumption to total saving.

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Definitions:

Cash Loan

A financial agreement where a borrower receives a specific amount of cash from a lender and agrees to repay it, with interest, over a set period.

Interest to be Collected

The amount of interest income that has been earned but not yet received in cash.

Cash Loan

A short-term loan provided to a borrower in cash, meant to be repaid with interest over a predetermined period.

Interest Collected

The amount of interest payments received by a lender from a borrower over a specified period of time.