The increase in aggregate planned expenditures divided by the change in national income that brought it about is called the
A)average propensity to consume.
B)average propensity to save.
C)marginal propensity to spend.
D)marginal propensity to save.
E)marginal propensity to consume.

Question

Quizplus · Accepted Answer

The increase in aggregate planned expenditures divided by the change in national income that brought it about is defined as the marginal propensity to spend. This measures the additional amount spent for every additional dollar of income.

The Increase in Aggregate Planned Expenditures Divided by the Change