How Do Economists Define the Marginal Propensity to Consume (MPC)

question 121

Multiple Choice

How do economists define the marginal propensity to consume (MPC) ?

• A)as the fraction of total disposable income that households save
• B)as the fraction of total disposable income that households spend on consumption
• C)as the additional disposable income households earn in a given period
• D)as the additional consumption that results from one dollar increase in disposable income

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Definitions:

Protective Role

An action or a behavior aimed at preventing harm or injury to oneself or others, often seen in social, psychological, or physical contexts.

Spousal Relationship

The interpersonal bond and dynamic between married partners, encompassing emotional, physical, and social connections.

Planning Ahead

The process of thinking about and organizing the activities required to achieve a desired goal in the future.

Adult Children

Individuals who are legally adults but are considered children in relation to their parents or guardians.