The Marginal Propensity to Consume

question 326

Multiple Choice

The marginal propensity to consume:

• A)is the change in consumption divided by the change in saving.
• B)is usually higher for unemployed individuals than for people who are very wealthy.
• C)is equal to the marginal propensity to save plus 1.
• D)tells policy makers the additional amount of investment spending that would accompany an additional amount of government spending.

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Definitions:

Hypoblast

The layer of cells inside the blastocyst (an early stage of the embryo), which contributes to the formation of the yolk sac and is involved in early embryonic development.

Epiblast

A layer of cells derived during the early development of an embryo, giving rise to all three primary germ layers.

Fertilization

Process that begins with the penetration of the secondary oocyte by the spermatozoon and is completed with the fusion of the male and female pronuclei.

Implantation

The process by which a fertilized egg attaches to the lining of the uterus, beginning the stages of pregnancy.