What is the marginal propensity to consume?
A. the change in consumption expenditure divided by the change in disposable income.
B. the percentage of disposable income that is consumed.
C. one minus the fraction of total disposable income that is saved.
D. the percentage of total income that is consumed.
Answer:A
What is the marginal propensity to consume?
A. the change in consumption expenditure divided by the change in disposable income. B. the percentage of disposable income that is consumed. C. one minus the fraction of total disposable income that is saved. D. the percentage of total income that is consumed.