The Slope of the Consumption Function Relates Changes in Consumer

question 37

Multiple Choice

The slope of the consumption function relates changes in consumer spending to changes in disposable income received by consumers. This is called:

• A) the marginal propensity to consume.
• B) the average propensity to consume.
• C) the utility-maximization function.
• D) the marginal rate of transformation.

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Definitions:

Line-Angle Formula

A simplified diagrammatic method of representing organic molecules, where lines represent bonds and the ends of lines or vertices represent carbon atoms, with heteroatoms (non-carbon atoms) usually labeled.

Compound

A compound consisting of two or more elements that are chemically united in a constant ratio.

Line-Angle Formula

A simplified representation of organic molecules where lines represent bonds between atoms, and atom junctions or the ends of lines represent carbon atoms.

Skeletal Structure

A simplified organic chemistry diagram showing the bonding arrangement of atoms within a molecule without depicting hydrogen atoms.