The Average Propensity to Consume Is the

question 3

Multiple Choice

The average 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) percentage of disposable income that is consumed.
• E) reciprocal of the marginal propensity to consume.

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