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The Marginal Propensity to Consume Measures

Question 32

Multiple Choice

The marginal propensity to consume measures


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

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