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In General, the Marginal Propensity to Spend Is the Change

Question 6

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 ; equal to
B) national income ; disposable income ; greater than
C) national income ; disposable income ; smaller than
D) disposable income ; national income ; equal to
E) disposable income ; national income ; greater than

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