The marginal propensity to consume is:

a. the change in disposable income divided by the change in consumption.
b. consumption spending divided by disposable income.
c. disposable income divided by consumption spending.
d. the change in consumption divided by the change in disposable income.
e. the change in consumption divided by disposable income.


d

Economics

You might also like to view...

Consider two goods, X and Y, where X is measured on the horizontal axis and Y is measured on the vertical axis. All else constant, a decrease in the price of X will cause the consumer's budget constraint to:

A) rotate in along the X axis B) rotate out along the X axis. C) shift out parallel to the original budget constraint. D) shift in parallel to the original budget constraint.

Economics

Bank A has checkable deposits of $800,000 and total reserves of $200,000. If the required reserve ratio is 0.11, the bank has required reserves of

A) $600,000. B) $88,000. C) $112,000. D) $22,000.

Economics

The main purpose of federal deposit insurance is to

A. permit the Federal Reserve to control the money supply. B. prevent borrowers who are likely to default on their loans from getting loans in the first place. C. prevent bank panics. D. put savings and loan associations on an equal competitive footing with commercial banks.

Economics

Medicare covers all those

A. who are both young and poor. B. unable to pay its premiums. C. over 65. D. eligible for Social Security benefits.

Economics