The Change in Consumption Divided by a Change in Income

question 83

Multiple Choice

The change in consumption divided by a change in income is called the:

• A) consumption function.
• B) marginal propensity to consume.
• C) marginal propensity to spend.
• D) spending function.
• E) changing propensity to consume.

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Definitions:

Concrete Operations

A stage in cognitive development, according to Piaget, where children gain the ability to think logically about concrete events and understand the concept of conservation.

Cognitive Development

The process of growth and change in intellectual/mental abilities such as thinking, reasoning, and understanding.

Modeling Clay

A pliable material used in arts and crafts, which can be shaped and molded into various forms, often used for creating sculptures.

Conservation

A concept in cognitive development where a child understands that changing the form of a substance or object does not change its amount, overall volume, or mass.