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  9. Q323

RRB Group D (Level-1 posts) 2022 · Question 323 of 598

The rate of increase in ex-ante consumption due to a unit increment in income is called _________.

  1. AMarginal propensity to consumeCorrect
  2. BAverage propensity to save
  3. CAverage propensity to consume
  4. DMarginal propensity to save

Answer: A. Marginal propensity to consume

Explanation

Marginal propensity to consume (MPC) is the ratio of change in consumption to change in income, indicating the proportion of additional income spent on consumption.

Source: RRB Group D 2022 Prev. Yr. Paper (18 Aug 2022) (Shift 2) - Prepp · reliable-secondary

← Q322View full paper (598 questions)Q324 →

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