The marginal propensity to consume explains how much of the next dollar of disposable income
A) a household will spend.
B) a business will invest.
C) the government will spend.
D) foreign residents will use to purchase domestic exports.

Question

Quizplus · Accepted Answer

The marginal propensity to consume (MPC) is the proportion of an increase in disposable income that a household will spend on consumption. Therefore, the correct choice is A.

The Marginal Propensity to Consume Explains How Much of the Next