Multiple Choice
In general,the marginal propensity to spend is the change in total desired expenditure induced by a change in ________ whereas the marginal propensity to consume is the change in desired consumption expenditure induced by a change in ________.In the case of the simplest macro model with no government and no international trade,however,the marginal propensity to spend is ________ the marginal propensity to consume.
A) national income; disposable income; greater than
B) national income; disposable income; equal to
C) disposable income; national income; equal to
D) disposable income; national income; greater than
E) national income; disposable income; smaller than
Correct Answer:

Verified
Correct Answer:
Verified
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