Multiple Choice
Which of the following best defines the marginal propensity to consume (MPC) ?
A) the fraction of extra income that a household consumes rather than saves
B) the fraction of extra income that a household either consumes or saves
C) the fraction of total income that a household consumes rather than saves
D) the fraction of total income that a household either consumes or saves
Correct Answer:
Verified
Correct Answer:
Verified
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