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What Does the Marginal Propensity to Consume Measure

Question 57

Multiple Choice

What does the marginal propensity to consume measure?  


A)  the amount of total income spent on current consumption 
B)  the amount of additional income spent on consumption 
C)  the amount of aggregate expenditures that will be allocated to consumption spending 
D)  the extent of induced consumption that occurs in the economy

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