QUESTION 21 What is the marginal propensity to consume? O a. The ratio of the change in consumption to the change in national income O b. The proportion of national income that goes on consumption O c. The additional spending by a consumer when the price of a good falls Od. The additional revenue received by a firm when it attracts a new customer
QUESTION 21 What is the marginal propensity to consume? O a. The ratio of the change in consumption to the change in national income O b. The proportion of national income that goes on consumption O c. The additional spending by a consumer when the price of a good falls Od. The additional revenue received by a firm when it attracts a new customer
Chapter11: Fiscal Policy
Section: Chapter Questions
Problem 1.6P
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![QUESTION 21
What is the marginal propensity to consume?
a. The ratio of the change in consumption to the change in national income
O b. The proportion of national income that goes on consumption
O c. The additional spending by a consumer when the price of a good falls
O d. The additional revenue received by a firm when it attracts a new customer](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe6120856-a5f6-4caa-ba37-e78e44f3615e%2Fe891adb1-4e19-4f8e-9696-8b32cef4c118%2Fj97xq1e_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUESTION 21
What is the marginal propensity to consume?
a. The ratio of the change in consumption to the change in national income
O b. The proportion of national income that goes on consumption
O c. The additional spending by a consumer when the price of a good falls
O d. The additional revenue received by a firm when it attracts a new customer
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