The Average Propensity to Consume Equals the

question 25

Multiple Choice

The average propensity to consume equals the

• A) change in personal consumption expenditures divided by the current level of consumption expenditures.
• B) amount spent on consumption divided by the amount of disposable income.
• C) change in personal consumption expenditures divided by the change in disposable income.
• D) personal consumption expenditures divided by personal saving.
• E) sum of personal consumption expenditures and disposable income divided by 2.

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Definitions:

Freshwater

Bodies of water that have a low concentration of salt, such as lakes, rivers, and streams, crucial for the survival of many ecosystems.

Estuary

A highly productive ecosystem where nutrient-rich water from a river mixes with seawater.

Oxygen

A chemical element essential for most life forms on Earth, a component of the air and a key element in the respiratory processes of most living organisms.