The Fraction of a Change in Income That Is Consumed

question 212

Multiple Choice

The fraction of a change in income that is consumed or spent is called

• A) the marginal propensity of income.
• B) the marginal propensity to save.
• C) the marginal propensity to consume.
• D) average consumption.

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Definitions:

Financial Measures

Quantitative metrics used to gauge a company's performance, financial health, and results over a specific period.

Income Statements

Financial statements that summarize a company's revenue, expenses, and profits over a specific period of time.

Standard Cost

A predetermined cost of manufacturing, delivering, or producing goods or services under normal conditions.

Variance Accounts

Financial accounts used to record the differences between planned and actual figures in budgeting and accounting.