What Is Meant by the Term the Marginal Propensity to Expend

question 16

Multiple Choice

What is meant by the term the marginal propensity to expend?

• A)Aggregate expenditures as a fraction of income.
• B)Autonomous expenditures as a fraction of income.
• C)The ratio of change in aggregate expenditures that results from a change in income.
• D)The ratio of change in autonomous expenditures that results from a change in income.

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Definitions:

Preindustrial Societies

Societies characterized by limited technological development, with economies primarily based on agriculture and craftsmanship, and lacking in industrialized production methods.

Social Necessity

Essential needs and requirements for individuals and societies to function and thrive, including shelter, healthcare, education, and security.

Gender Roles

Socially constructed roles, behaviors, activities, and attributes that a given society considers appropriate for men and women.

Cultural Standards

Refers to the norms and expectations that guide behaviors within a specific culture.