The Marginal Propensity to Consume Represents

question 42

Multiple Choice

The marginal propensity to consume represents

• A)the level of consumption that occurs if disposable income is zero.
• B)the ratio of total consumption to disposable income.
• C)total income minus total taxes.
• D)the change in output caused by a one-unit change in autonomous demand.
• E) the change in consumption caused by a one-unit change in disposable income.

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Definitions:

Conforming Goods

Products or materials that meet the specifications and standards outlined in a contract or agreement between buyer and seller.

Course of Performance

A term referring to the conduct between parties that is used to interpret their agreement within their ongoing business relationship.

Usage of Trade

Established practices or methods of dealing regularly observed in a particular industry or trade.

Commercially Impracticable

A condition in contractual agreements indicating that fulfilling the contract has become excessively burdensome or impossible due to unforeseen events.