Solved

The Marginal Propensity to Consume (MPC) Is The

Question 25

Multiple Choice

The marginal propensity to consume (MPC) is the:


A) tendency that consumers have to spend more than they save.
B) total consumption as a percentage of real GDP in a country.
C) fraction of each dollar of extra income that households save.
D) fraction of each dollar of extra income that households spend on consumption.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q20: Which figure shows the impact of a

Q21: The difference between the multiplier effect and

Q22: Consumption refers to the:<br>A)purchases of goods and

Q23: Define the following concepts:<br>(a) marginal propensity to

Q24: Consumption is $5,900 when income is $6,000,

Q26: If the marginal propensity to consume is

Q27: Consider the following data. Based on

Q28: An increase in spending in the economy

Q29: If the marginal propensity to consume is

Q30: The slope of the consumption function is:<br>A)always