Textbook ExpertVerified Tutor
9 Nov 2021
Introduction
Consumption expenditure is the proportion of a person's total income that he/she spends on the consumption of goods and services. People do not consume all of their incomes. They consume a part of their income and save the rest. Marginal propensity to consume refers to that much of consumption that comes from an extra unit of dollar spent out of the consumer's given income.
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