Question Details

Detailed explanation and options for the selected question.

What is meant by “marginal propensity to consume”?

A. The total amount consumed out of total income
B. The fraction of additional income spent on consumption
C. The amount saved from total income
D. The proportion of income spent on necessities

Explanation:

Marginal propensity to consume is the fraction of additional income that is spent on consumption. It differs from total or necessity-based spending.

Related Topics

Digital Rupee and Central Bank Digital Currency (CBDC)

Revision Notes

Informal Sector Challenges and Formalization

Revision Notes

Climate Change: Challenges and Strategies

Revision Notes

Agricultural Reforms and Future Roadmap

Revision Notes

Make in India 2.0

Revision Notes

E-Waste and Circular Economy

Revision Notes

Inflation and Price Stability

Revision Notes

Services Sector and Service Exports

Revision Notes

Agricultural Marketing and Supply Chain

Revision Notes

Regional Comprehensive Economic Partnerships (RCEP) Withdrawal

Revision Notes