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olga2289 [7]
2 years ago
8

The marginal propensity to consume is the:

Business
1 answer:
erma4kov [3.2K]2 years ago
4 0

Answer: proportion of extra income that is consumed. (D)

Explanation:

The marginal propensity to consume is the proportion of an additional income that an individual consumes.

For example, if a household earns an extra dollar of disposable income, while the marginal propensity to consume is 0.60 this means that at that dollar, the household will spend 60 cents and save 40 cents.

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3 years ago
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