The Portion of Additional Income That Is Spent on Consumption

question 140

Multiple Choice

The portion of additional income that is spent on consumption is:

• A) average propensity to consume (AP
• C).
• B) marginal propensity to consume (MP
• C).
• C) marginal propensity to save (MP
• S).
• D) average propensity to save (AP
• S).
• E) 1 minus marginal propensity to consume .

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Definitions:

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A legal action or proceeding between two parties before a court.

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Structured processes where a neutral third party assists disputing parties in reaching a mutually acceptable agreement.

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A legally binding resolution made by an arbitrator, who is a neutral third party, in a dispute between parties outside of court.

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