Effects of Marginal Propensity to Consume
Which of the following does NOT describe how the marginal propensity to consume affects the economy?
A
An increase in saving inherently strengthens the economy.
B
Saving withdraws funds from the active economy.
C
Consumer spending provides producers with the revenue to manufacture goods.
D
Consumer spending injects funds into the economy.
Question Leaderboard
Not enough data yet to show leaderboard.