The Marginal Propensity to Consume Is the Slope of the Consumption

question 92

True/False

The marginal propensity to consume is the slope of the consumption function.

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Definitions:

Income

The amount of money received by an individual or entity, typically through work, investments, or other sources over a certain period.

Saving

The portion of income not spent on current consumption, but rather set aside for future use, often by depositing in financial institutions or investing.

Households

Units consisting of one or more persons living in the same dwelling and sharing meals or living accommodation; it is the basic unit in a society for consumption and decision making.

Firms

Business organizations or entities engaged in commercial, industrial, or professional activities.