The Marginal Propensity to Consume Describes ________

question 73

Multiple Choice

The marginal propensity to consume describes ________.

• A)the tendency to consume fringe,or unusual items
• B)the impact of a change in spending on income
• C)the impact on consumption resulting from a change in income
• D)lifetime consumption resources

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Definitions:

Marked To Market

A method of measuring the fair value of accounts that can fluctuate over time, such as assets and liabilities, by updating them to their current market values.

Good-Faith Deposit

A sum of money provided as a sign of commitment or seriousness, often used in transactions like real estate purchases to secure a deal before finalizing.

Broker

An individual or firm that acts as an intermediary between buyers and sellers, usually charging a commission for services.

Hedge

An investment made to reduce the risk of adverse price movements in an asset, usually by taking an offsetting position in a related security.