The Sum of the Marginal Propensity to Consume and the Marginal

question 185

Multiple Choice

The sum of the marginal propensity to consume and the marginal propensity to save is always equal to

• A)zero.
• B)0.5.
• C)1.
• D)100.

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Definitions:

Per Unit

A measure expressing the cost, price, or quantity with respect to a single unit of goods or services.

Minimum-wage Laws

Legislation established to set the lowest hourly rate that employers can legally pay their workers, aimed at preventing exploitation and poverty.

Firms

Organizations that use various inputs to produce goods or services for sale to consumers, other businesses, or the government.

Workers

Individuals engaged in a particular task or activity for wages or salary.