Introduction to Economics 2 Deneme Sınavı Sorusu #349563

Which of the following represents how much the consumption expenditures change when income changes?

 


Marginal propensity to save

 

Marginal propensity to consume

 

Average propensity to consume

 

Average propensity to save

Capacity utilization


Yanıt Açıklaması:

Consumption expenditures are composed of the sum of autonomous consumption and consumption expenditures related to the income (induced consumption). As we discussed above, an increase in the level of income also increases consumption expenditures related to income. This relationship between the change in income and the change in consumption is called marginal propensity to consume (MPC).

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