The Marginal Propensity to Consume Is the

question 62

Multiple Choice

The marginal propensity to consume is the

• A) fraction of an extra dollar of GDP that becomes disposable income.
• B) share of GDP spent by households and businesses.
• C) proportion of an extra dollar of disposable income that is spent on consumption.
• D) reciprocal of the average propensity to consume.
• E) fraction of disposable income that is consumed.

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