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What Does the Marginal Propensity to Expend Mean

Question 181

Multiple Choice

What does the marginal propensity to expend mean?


A) It is the fraction of income that is not spent.
B) It is the ratio of change in income that results from a change in expenditures.
C) It is the ratio of change in expenditures that results from a change in income.
D) It is the fraction of income that is taxed.

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