The Marginal Propensity to Consume Is the

Multiple Choice

The marginal propensity to consume is the

A) fraction of an extra dollar of GDP that becomes disposable income.
B) share of GDP spent by households and businesses.
C) proportion of an extra dollar of disposable income that is spent on consumption.
D) reciprocal of the average propensity to consume.
E) fraction of disposable income that is consumed.