The Marginal Propensity to Consume

question 35

Multiple Choice

The marginal propensity to consume

• A) increases when income increases.
• B) is the change in consumption associated with a change in income.
• C) is equal to consumption divided by income.
• D) decreases when income increases.

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Definitions:

Profitable

A financial state where revenues exceed expenses, generating a positive financial gain from business operations.

Shareholders

Individuals or entities that own shares in a corporation, giving them certain rights and interests in the company.

Deontological Thinker

An individual who bases ethical decision-making on fixed moral rules or duties, regardless of the outcomes these decisions may produce.

Kant

Immanuel Kant, an 18th-century German philosopher renowned for his work in ethics, epistemology, and metaphysics, emphasizing duty, moral law, and the categorical imperative.