Which of the Following Best Defines the Marginal Propensity to Consume

question 83

Multiple Choice

Which of the following best defines the marginal propensity to consume (MPC) ?

• A) the fraction of extra income that a household consumes rather than saves
• B) the fraction of extra income that a household either consumes or saves
• C) the fraction of total income that a household consumes rather than saves
• D) the fraction of total income that a household either consumes or saves

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Definitions:

Equality Matching

A principle of social justice where individuals aim to ensure fairness and equality by treating each person the same, often by sharing resources equally.

Community Sharing

A social arrangement characterized by the collective ownership and use of resources among community members.

Metaphysical Environment

An abstract concept referring to environments or conditions that go beyond the physical realm, often relating to philosophical or spiritual aspects.

Anthropologist

A scientist who studies human societies, cultures, and their development.