The Marginal Propensity to Consume Equals

question 142

Multiple Choice

The marginal propensity to consume equals

• A) consumption expenditure divided by disposable income.
• B) consumption expenditure divided by the change in disposable income.
• C) the change in consumption expenditure divided by the change in disposable income.
• D) the change in consumption expenditure divided by disposable income.
• E) the change in autonomous consumption divided by the change in induced consumption.

---

Definitions:

Purchase Rate

The frequency at which a product or service is bought over a specific period of time.

Budgeting Factor

An element or variable that is considered in the preparation of a budget, influencing or determining the amounts allocated within the budget.

Time Frame

Refers to the specific duration during which an activity or event occurs.

Objectives

Specific, measurable goals that a person or organization aims to achieve within a defined timeframe.