The slope of the consumption function relates changes in consumer spending to changes in disposable income received by consumers. This is called:
a. the marginal propensity to consume.
b. the average propensity to consume.
c. the utility-maximization function.
d. the marginal rate of transformation.
Ans: a. the marginal propensity to consume.
Economics
You might also like to view...
The market where banks borrow from other banks for short periods of time is the:
a. discount market. b. federal funds market. c. inter-bank loan market. d. national bank market. e. liquidity market.
Economics
Which of the following is not a resource for a society?
a. capital goods, like factories and machine tools b. entrepreneurship c. legal institutions d. labor
Economics