Aggregate Expenditures Model and Macroeconomic Equilibrium

15. Deriving the Aggregate Expenditures Model / Aggregate Expenditures Model and Macroeconomic Equilibrium / Problema 4

Problema 4

What does the marginal propensity to consume indicate?

The percentage of income spent on investment.

The proportion of additional income spent on consumption.

The total amount of income saved.

The amount of government purchases.