Question

Generally, which group of people has the highest marginal propensity to consume?

a. the richest 1%
b. wealthy people
c. middle-class people
d. low-income people

Answer 1

D. low income

Step-by-step explanation:

Generally the marginal propensity to consume is higher for poorer individuals than wealthy individuals because basic needs (such as food, shelter, clothing) make up a larger fraction of a poor person's income.