The Marginal Propensity to Consume Is the

question 95

Multiple Choice

The marginal propensity to consume is the

• A)fraction of the first dollar of disposable income received that is saved.
• B)fraction of the first dollar of disposable income received that is consumed.
• C)fraction of the last dollar of disposable income received that is saved.
• D)fraction of a change in disposable income that is spent on consumption.
• E)total amount of consumption divided by the total amount of disposable income.

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