Multiple Choice
How do economists define the marginal propensity to consume (MPC) ?
A) as the fraction of total disposable income that households save
B) as the fraction of total disposable income that households spend on consumption
C) as the additional disposable income households earn in a given period
D) as the additional consumption that results from one dollar increase in disposable income
Correct Answer:

Verified
Correct Answer:
Verified
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