The Marginal Propensity to Consume Is

question 34

Multiple Choice

The marginal propensity to consume is

• A) consumption divided by disposable income
• B) national income divided by consumption
• C) the change in national income caused by a $1 change in consumption
• D) the change in consumption caused by a $1 change in disposable income
• E) the percentage increase in consumption caused by a 1% decrease in savings

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Definitions:

Greenhouse Effect

A natural process by which certain gases in the Earth's atmosphere trap heat, warming the planet and making it habitable, but which is exacerbated by human activities leading to climate change.

Environmental Issues

Problems related to the natural environment, including pollution, climate change, and biodiversity loss.

Environmental Costs

The negative impacts on the environment resulting from human activities, including pollution, resource depletion, and habitat destruction.

Market Costs

Expenses associated with buying, selling, and producing goods or services within a market economy.