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    The marginal propensity to consume

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    1. The marginal propensity to consume is defined as:
    Î"C/Î"Yd.
    Î"S/Î"Yd.

    Î"Yd/Î"C.

    Î"Yd/Î"S.
    Î"Yd/Î"S + Î"Yd/Î"S = 1

    2. Over time Americans have chosen to cook less at home and dine out more. This change in behavior:

    does not affect GDP.

    increases GDP.

    reduces GDP.

    none of the above

    all of the above

    3. The falling phase of a business cycle measured by a decrease in real GDP is called:
    recession
    hyperinflation
    expansion
    inflation
    recovery
    diminishing returns

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    https://brainmass.com/economics/business-cycles/the-marginal-propensity-to-consume-377731

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    The marginal propensity to consume is clarified in this solution.

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