Marginal propensity to consume is the portion of a. additional income that is saved. b. total...
Marginal propensity to consume is the portion of
|
a. |
additional income that is saved. |
|
b. |
total income that is spent on consumption. |
|
c. |
additional income that is spent on consumption. |
|
d. |
total income that is saved. |
|
e. |
additional income that is taxed. |
Homework Answers
Answer
Option c
additional income that is spent on consumption
A marginal propensity to consume is the additional income spent on
consumption.
It is a ratio of change in consumption because of the change in
income
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Marginal propensity to consume is the portion of
a.
additional income that is saved.
b.
total...
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24. If $1,000 of additional spending occurs and the marginal propensity to consume is 0.8, the...
24. If $1,000 of additional spending occurs and the marginal propensity to consume is 0.8, the total effect on the economy is an increase of_ in income or output. A) $800 B) $1,000 C) $5,000 D) $8,000
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Marginal propensity to consume (MPC) is the fraction of extra income that a household spends on consumption. a. true b. false
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