Ask Question
BusinessBusiness
Today, 10:39

The marginal propensity to consume is the: ratio of consumption to income. amount consumed out of an additional dollar of income. amount available for consumption after precautionary saving. ratio of consumption to wealth.

+4
Answers (1)
  1. Today, 11:06
    0
    The correct answer is: amount consumed out of an additional dollar of income.

    Explanation:

    The marginal propensity to consume is a measure to show the increase in consumption of goods and services due to an increase in the disposable income of the consumer.

    It is measured by the ratio of change in consumption and change in income. It can also be calculated as 1 - MPS, where MPS is the marginal propensity to save. In other words, MPS is the ratio of change in savings and change in income.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The marginal propensity to consume is the: ratio of consumption to income. amount consumed out of an additional dollar of income. amount ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
1. M1 includes more than just currency because A. people hold money as other stores of value such as savings accounts and money market mutual funds. B. other assets can also be used to make transactions to buy goods and services. C.
Answers (1)
Globo-Chem Co. reported net sales of $600 million last year and generated a net income of $132.00 million. Last year’s accounts receivable increased by $17 million. What is the maximum amount of cash that Globo-Chem Co.
Answers (1)
How are volatility and risk related in an investment?
Answers (1)
Widely varying consumption ratios: work against the implementation of activity-based costing. indicate an out-of-control production environment. dictate a need for traditional costing systems. create an unsolvable product-costing problem.
Answers (1)
Services are often judged based on which things? A. The people providing the service and the experience of receiving the service B. The physical goods associated with the service and the age of the company C.
Answers (1)
New Questions in Business
Which of the following characteristics differentiates a firm in an oligopolistic market from a firm in a perfectly competitive market? A) A firm in an oligopolistic market has to consider its own impact on price when making production decisions.
Answers (1)
What is an invention? a) the transformation of an idea into a new product or process b) the transformation of an idea into a successful product c) a unique idea that has not been thought of before d) a unique idea that has been patented
Answers (1)
Which of the following account login credentials is most important to keep secure? 1. Credit Card website 2. 401 (k) website 3. Primary Email account 4. Mortgage website 5. Bank website
Answers (1)
Consumer behavior is the way that forces shape people's
Answers (1)
On January 1, 2013, M. Johanson Company purchased equipment for $36,000. The company is depreciating the equipment at the rate of $500 per month. The book value of the equipment at December 31, 2013 is:A) $0. B) $6,000. C) $30,000. D) $36,000.
Answers (1)
Home » Business » The marginal propensity to consume is the: ratio of consumption to income. amount consumed out of an additional dollar of income. amount available for consumption after precautionary saving. ratio of consumption to wealth.
Sign Up Forgot Password?