What Does the Marginal Propensity to Consume Measure

question 57

Multiple Choice

What does the marginal propensity to consume measure?  

• A) the amount of total income spent on current consumption 
• B) the amount of additional income spent on consumption 
• C) the amount of aggregate expenditures that will be allocated to consumption spending 
• D) the extent of induced consumption that occurs in the economy

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Definitions:

Action

The process or state of acting or being active, usually implying movement, change, or doing something.

Close

In communication, it refers to the act of concluding a conversation or interaction in a manner that is clear and leaves no topics or questions unresolved.

Executive Summary

A concise overview of a document's main points, typically placed at the beginning to inform readers about its contents quickly.

Problem Solution

A method of structuring communication or written content by identifying an issue and proposing one or more solutions to address it.