Multiple Choice
The change in desired consumption divided by the change in disposable income that brought it about is called the
A) average propensity to consume.
B) marginal propensity not to spend.
C) marginal propensity to consume.
D) consumption function.
E) average propensity not to consume.
Correct Answer:

Verified
Correct Answer:
Verified
Q7: "The marginal propensity to consume" refers to
Q8: The aggregate expenditure (AE)function is an upward-
Q9: Suppose the price level is constant, output
Q10: Consider a simple macro model with demand-
Q11: The aggregate consumption function is based on
Q13: In each of the four expenditure categories,
Q14: The marginal propensity to save refers to
Q15: The increase in aggregate planned expenditures divided
Q16: A rise in the real rate of
Q72: Consider a simple macro model with a