The Larger Is the Marginal Propensity to Consume (MPC)

question 315

Multiple Choice

The larger is the marginal propensity to consume (MPC)

• A)the larger is the multiplier.
• B)the smaller is the multiplier.
• C)the smaller is the slope of the consumption function.
• D)the larger is the slope of the saving function.

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Definitions:

Gasoline

A flammable liquid derived from petroleum, used mainly as fuel in most internal combustion engines.

Perfectly Inelastic

A situation where the quantity demanded or supplied of a good is unaffected by changes in its price.

Upward-Sloping

A term often used in economics to describe a graph line that represents an increase in one variable as another variable increases, typically applied to supply curves.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded for a given period.