in-a-recession-why-might-a-government-be-interested-in-the-marginal-propensity-t

Question

In a recession, why might a government be interested in the marginal propensity to consume of its citizens?

Accepted Answer

To estimate the potential impact of fiscal stimulus on overall consumption.

Answer

To predict how much additional income will be saved rather than spent.

Answer

To determine the average income of its citizens.

Answer

To calculate the total consumption of the economy.