The marginal propensity to consume measures
A. how much of a given level of disposable income is consumed.
B. what percentage of disposable income goes to saving.
C. how much consumption expenditure occurs at the equilibrium level of income.
D. the fraction of a change in disposable income that is spent on consumption expenditure.
Answer:D
The marginal propensity to consume measures
A. how much of a given level of disposable income is consumed. B. what percentage of disposable income goes to saving. C. how much consumption expenditure occurs at the equilibrium level of income. D. the fraction of a change in disposable income that is spent on consumption expenditure.