What Is the Marginal Propensity to Consume

question 93

Multiple Choice

What is the marginal propensity to consume?  

• A) It is the decrease in disposable income that occurs as a result of an increase in consumption. 
• B) It is the increase in disposable income that occurs as a result of an increase in consumption. 
• C) It is the decrease in consumption that occurs as a result of an increase in disposable income. 
• D) It is the increase in consumption that occurs as a result of an increase in disposable income.

---

Definitions:

Increased Effort

The act of dedicating more energy or work towards achieving a particular goal or task.

Depressed

A state of low mood and aversion to activity that can affect a person's thoughts, behavior, motivations, feelings, and sense of well-being.

IQ Scores

A measure of a person's intelligence as indicated by an intelligence test, relative to a statistically normal curve.

Experimenter

An individual conducting a scientific experiment to test a hypothesis or determine the effect of one variable on another.