Final answer:
A high marginal propensity to consume indicates that a larger share of additional income will be spent on consumption, meaning there is e. a low marginal propensity to save.
Step-by-step explanation:
A high marginal propensity to consume (MPC) implies that a significant portion of any additional disposable income a household earns will be spent on consumption rather than saved. The higher the MPC, the lower the marginal propensity to save (MPS), as they must add up to one (MPC + MPS = 1) according to the consumption function fundamentals in economics. Therefore, the correct answer to the question 'A high marginal propensity to consume implies which of the following?' is e. a low marginal propensity to save.
The marginal propensity to consume is an essential concept in understanding how consumption expenditures increase with national income rises. It is a measure of the increase in consumption expenditures due to an increase in disposable income. For example, if the MPC is 0.8, then 80% of any additional income will be spent on consumption, and the remaining 20% will be saved, indicating an MPS of 0.2.