Multiple Choice
The marginal propensity to consume refers to
A) the additional saving that occurs out of an additional dollar of disposable income.
B) the additional consumption expenditure that occurs out of an additional dollar of disposable income.
C) the additional consumption expenditure that occurs out of an additional dollar of investment.
D) total consumption expenditure divided by total disposable income.
Correct Answer:
Verified
Correct Answer:
Verified
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