Asked by
Alicia Reynolds
on Nov 11, 2024
Verified
The fraction of a change in disposable income that is consumed is called _____.
A) autonomous consumption
B) induced consumption
C) the multiplier
D) the marginal propensity to consume
E) the marginal propensity to save
Marginal Propensity
Refers to the ratio of the change in an individual's consumption to the change in their income.
Disposable Income
Money available to households for personal spending and saving after deducting their income taxes.
- Acquire knowledge about the influence of present production rates in relation to forecasted expenses on stock quantities and production determinations.
- Foster an understanding of the linkage between the marginal propensity to consume (MPC) and the spending multiplier.
Verified Answer
MM
Learning Objectives
- Acquire knowledge about the influence of present production rates in relation to forecasted expenses on stock quantities and production determinations.
- Foster an understanding of the linkage between the marginal propensity to consume (MPC) and the spending multiplier.
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