When the Marginal Propensity to Consume (MPC) Increases

question 152

Multiple Choice

When the marginal propensity to consume (MPC) increases

• A) the multiplier remains unchanged.
• B) the multiplier increases.
• C) the multiplier decreases.
• D) the average propensity to save remains unchanged.

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Definitions:

Stomach's Contents

The mixture of food, liquids, digestive juices, and enzymes present in the stomach during the process of digestion.

Cessation of Eating

The process of stopping or ceasing food intake or consumption.

Leptin

A chemical produced by the adipose cells that seems to signal that plenty of fat is stored and that no more fat is needed. This signal may diminish eating.

Adipose Cells

Cells specialized in storing fat, found in adipose tissue, and play a role in energy storage, insulation, and cushioning of the body.