Respuesta :
The percentage of every additional dollar of disposable income spent on consuming is known as the marginal propensity to consume. Here option B is correct answer.
The marginal propensity to consume (MPC) is a concept used in economics to describe the portion of a customer's overall income rise that they spend on spending rather than saving.
The marginal propensity to consume (MPC) index measures the proportional increase in spending that occurs with income growth. It quantifies the portion of additional income that is spent on consumption as opposed to savings, to put it another way. The Keynesian economic theory uses MPS most commonly.
MPS is simply calculated as the difference between the observed change in income and the observed change in savings. A consumer's marginal propensity to save (MPS), in accordance with Keynesian economic theory, is the portion of an increase in overall income that they decide to save as opposed to spending on goods and services.
Complete question:
The marginal propensity to consume is:
A - Total consumption in a given period divided by total disposable income
B - The fraction of each additional dollar of disposable income spent on consumption
C - The percentage of total disposable income spent on consumption that part of
D - the consumer dollar that goes to the purchase of investment goods
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