The Marginal Propensity to Consume Is

question 87

Multiple Choice

The marginal propensity to consume is

• A) another name for consumption expenditure.
• B) disposable income minus consumption expenditure.
• C) the change in disposable income minus the change in consumption expenditure.
• D) the change in consumption expenditure divided by the change in disposable income that brought it about.
• E) another name for autonomous consumption expenditure.

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Definitions:

Substitutes

Products or services that can replace each other in use, where an increase in the price of one leads to an increase in demand for the other.

Substitutes

Goods or services that can replace each other in use, where an increase in the price of one leads to an increased demand for the other.

Natural Gas

A fossil fuel used as a source of energy for heating, cooking, and electricity generation, consisting mainly of methane.

Coal

A combustible black or brownish-black sedimentary rock, composed mostly of carbon and hydrocarbons, used as a fossil fuel.