The Amount by Which Consumption Increases When Disposable Income Increases

question 112

Multiple Choice

The amount by which consumption increases when disposable income increases by $1 is called:

• A) an automatic stabilizer.
• B) the consumption function.
• C) the marginal propensity to consume.
• D) autonomous expenditure.

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Definitions:

Apex

The top or highest part of something, often used to describe the pointed end of the heart.

Circumflex Artery

An artery that branches off from the coronary arteries to supply the heart muscle with oxygenated blood.

Inferior Vena Cava

The largest vein in the human body, which carries deoxygenated blood from the lower and middle body into the right atrium of the heart.

Pulmonary Vein

A vascular channel that transports blood enriched with oxygen from the lungs to the heart's left atrium.