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According to the Introduction of the Chapter on Imagery

question 14

Multiple Choice

According to the introduction of the chapter on imagery,


Definitions:

MPC

Marginal Propensity to Consume, which indicates the proportion of additional income that a household is likely to spend on consumption rather than saving.

Disposable Income

The capital available to households for deploying into savings and spending post-tax.

Consumption

The act of using goods and services by households that leads to a decrease in their stock.

Disposable Income

Budget available for households to direct towards saving and spending post-income tax assessment.

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