When consumers realize additional income in a household and spend the additional monies, it is called the
A)credit increase theory.
B)marginal propensity to consume.
C)aggregate demand factor.
D)measure of individual wealth.

Question

Quizplus · Accepted Answer

The marginal propensity to consume (MPC) is the fraction of additional income that consumers spend on goods and services.

When Consumers Realize Additional Income in a Household and Spend