Question

The rate at which a consumer is willing to give up consumption in one period for additional consumption in another is known as ________. A) the marginal propensity to consume. B) the average propensity to consume. C) the marginal rate of substitution. D) the marginal propensity to save.

Answer 1

c) the marginal rate of substitution

Step-by-step explanation:

the marginal rate of substitution is defined as the rate at which a consumer would be willing to forgo a specific quantity of one good for more units of another good at the same utility level; the marginal rate of substitution is used by economists to analyze consumer's spending behavior