Question

The propensity to consume of rich people is relatively_____​

Answer 1

Answer:

propensity to consume, in economics, the proportion of total income or of an increase in income that consumers tend to spend on goods and services rather than to save.

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Answer 2

The propensity to consume is the proportion of disposable income that consumers choose to spend on consumption.

Marginal propensity to consume (MPC) is the proportion of additional disposable income that people use to increase their consumption.

MPC of rich people is relatively lower than that of poor people.