The Ratio of the Change in Consumption to the Change

question 116

Multiple Choice

The ratio of the change in consumption to the change in disposable income is the

• A) marginal propensity to consume.
• B) marginal propensity to save.
• C) average propensity to consume.
• D) average propensity to save.

---

Definitions:

Estoppel

A legal principle that prevents a person from denying or asserting anything to the contrary of what has been established as the truth in legal proceedings.

Principal

Principal refers to a main party to a transaction, contract, or financial instrument, as opposed to an agent who acts on someone else's behalf.

Agent

A person or entity authorized to act on behalf of another (known as the principal) in legal or business matters.

Authority

The legal power or right given to an individual or entity to carry out certain actions or to make decisions.