The Marginal Propensity to Consume (Mpc) Is The

question 16

Multiple Choice

The marginal propensity to consume (mpc) is the:

• A) amount by which disposable income increases when consumption increases by $1.
• B) amount by which consumption increases when disposable income increases by $1.
• C) percentage by which consumption increases when disposable income increases by 1%.
• D) percentage by which disposable income increases when consumption increases by 1%.

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Definitions:

Percentage

a rate, number, or amount in each hundred, symbolized by the percent sign (%), used to express proportions and relationships between quantities.

Acute Phase

A critical and intense period of a condition or situation, often characterized by a sudden onset and severe symptoms.

Disorganization

Lack of structure or order, resulting in decreased efficiency and coherence.

Humiliation

The feeling of being ashamed or embarrassed, often due to being demeaned or made to feel inferior by others.