As Disposable Income Increases, Consumption Spending Will Rise, but It

question 52

True/False

As disposable income increases, consumption spending will rise, but it will rise by less than disposable income if the MPS is positive.

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Definitions:

Bank

A financial institution licensed to receive deposits and make loans, offering various other financial services.

Currency Requirement

The necessity for a form of payment to be accepted as valid currency within a financial transaction.

Negotiability

The ability of a financial instrument to be transferred from one party to another with the title passing legally to the transferee.

United States

A federal republic consisting of fifty states, a federal district, and various territories, characterized by its democratic government and diverse population.