The Marginal Propensity to Consume

question 43

Multiple Choice

The marginal propensity to consume

• A)is equal to zero when disposable income equals consumption expenditure.
• B)is equal to 1 minus the slope of the saving function.
• C)is negative when saving is positive.
• D)increases as the economy moves upward along the consumption function.
• E)is greater than the slope of the 45-degree line.