The change in desired consumption divided by the change in disposable income that brought it about is called the
A)average propensity to consume.
B)marginal propensity not to spend.
C)marginal propensity to consume.
D)consumption function.
E)average propensity not to consume.

Question

Quizplus · Accepted Answer

The change in desired consumption divided by the change in disposable income is referred to as the marginal propensity to consume. This measures how much of an additional dollar of disposable income is spent on consumption.

The Change in Desired Consumption Divided by the Change in Disposable