The Marginal Propensity to Consume

question 113

Multiple Choice

The marginal propensity to consume

• A)is the proportion of disposable income consumed
• B)is the reciprocal of the ratio of disposable income to saving
• C)is the change in consumption relative to a change in disposable income
• D)minus the marginal propensity to save must equal 1
• E)is greater than 1 at all levels of income

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