What term describes the portion of total income that is used for consumption or spending?

Show Answers

the marginal propensity to spendthe marginal saving ratiothe average propensity to consumethe marginal propensity to consume

Explanation

Option A refers to the marginal propensity to spend, B is the marginal propensity to save, C represents the average portion of income consumed, and D is the marginal change in consumption relative to income change.