Which of the Following Best Defines the Marginal Propensity to Consume

question 83

Multiple Choice

Which of the following best defines the marginal propensity to consume (MPC) ?

• A) the fraction of extra income that a household consumes rather than saves
• B) the fraction of extra income that a household either consumes or saves
• C) the fraction of total income that a household consumes rather than saves
• D) the fraction of total income that a household either consumes or saves

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Definitions:

Adverse Childhood Experiences

Potentially traumatic events that occur in childhood, such as abuse or neglect, which can have long-term effects on health and well-being.

Drug Addiction

A chronic disorder characterized by compulsive drug seeking and use, leading to significant brain changes and behavioral consequences despite harmful effects.

Botulin Toxin

A neurotoxic protein produced by the bacterium Clostridium botulinum, which causes botulism and is used medically to treat various conditions, including muscle spasms.

Spoiled Food

Food that has become unsafe or unpalatable due to bacterial growth, chemical breakdown, or other processes that lead to deterioration.