The Marginal Propensity to Consume Refers to

question 327

Multiple Choice

The marginal propensity to consume refers to

• A) the additional saving that occurs out of an additional dollar of disposable income.
• B) the additional consumption expenditure that occurs out of an additional dollar of disposable income.
• C) the additional consumption expenditure that occurs out of an additional dollar of investment.
• D) the ratio of total consumption expenditure to total disposable income.

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Definitions:

Systematic Desensitization

An exposure therapy that uses relaxation training and a fear hierarchy to help clients with phobias react calmly to the objects or situations they dread.

Flooding

A psychological treatment method where a person is exposed to their phobia at its worst until the fear diminishes.

Specific Phobias

An irrational fear and avoidance of a particular object or situation that poses little to no actual danger.

Predisposition

A natural inclination or tendency to suffer from a particular condition or exhibit a particular behavior.