11 The portion of additional income that is spent on consumption is called theO a) average propensity to save.b)average propensity to consume.c) marginal propensity to consume.O d) marginal propensity to save.O e) marginal propensity to invest.

MPC + MPS = 1 where, MPC is Marginal Propensity to Consume MPS is Marginal Propensity to Save

he portion of additional income that is spent on consumption is called the Da) average propensity to save. Ob) average propensity to consume. Oc) marginal propensity to consume. O d) marginal propensity to save. De) marginal propensity to invest.

he portion of additional income that is spent on consumption is called the Da) average propensity to save. Ob) average propensity to consume. Oc) marginal propensity to consume. O d) marginal propensity to save. De) marginal propensity to invest.

Macroeconomics: Principles and Policy (MindTap Course List)

13th Edition

ISBN:9781305280601

Author:William J. Baumol, Alan S. Blinder

Publisher:William J. Baumol, Alan S. Blinder

Chapter8: Aggregate Demand And The Powerful Consumer

Section: Chapter Questions

Problem 8DQ

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Question

The portion of additional income that is spent on consumption is called the
O a) average propensity to save.
b)
average propensity to consume.
c) marginal propensity to consume.
O d) marginal propensity to save.
O e) marginal propensity to invest.

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