The marginal propensity to consume is equal to
A. what people spend out of total disposable income.
B. the desired amount of consumption expenditure as a proportion of disposable income.
C. the average, after-tax consumption amount.
D. the change in consumption expenditure from a change in disposable income.
Answer:D
The marginal propensity to consume is equal to
A. what people spend out of total disposable income. B. the desired amount of consumption expenditure as a proportion of disposable income. C. the average, after-tax consumption amount. D. the change in consumption expenditure from a change in disposable income.