The Marginal Propensity to Consume Is

question 181

Multiple Choice

The marginal propensity to consume is

• A) total consumption expenditure divided by the change in disposable income.
• B) the change in consumption expenditure divided by total disposable income.
• C) the change in consumption expenditure divided by the change in disposable income.
• D) the change in consumption expenditure divided by total saving.

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Definitions:

Emotional Response

The psychological and physical reactions to emotional stimuli, affecting mood and behavior.

Freedom

The power or right to act, speak, or think as one wants without hindrance or restraint.

Researcher's Hypothesis

A statement or prediction that a researcher sets out to test through experimental or observational study.

Cues

Signals or stimuli that trigger a reaction or encourage a specific response or behavior in humans or animals.