The Marginal Propensity to Consume Is Defined as the

question 97

Multiple Choice

The marginal propensity to consume is defined as the

• A)fraction of consumption that is spent on goods,both durable and nondurable
• B)fraction of a change in income that is spent on consumption
• C)fraction of a change in income that is spent on investment
• D)average amount of consumption at different levels of income
• E)average amount of consumption at a given level of income

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Definitions:

Ounce

A unit of weight in the US customary and British imperial systems, equal to 1/16 of a pound or approximately 28.35 grams.

Milligram

A mass unit that is equivalent to 0.001 of a gram.

Gram

An expression of mass measuring exactly one thousandth of a kilogram.

Milligram

A unit of mass equal to one thousandth of a gram, used in the metric system.