Define and explain how we calculate the marginal propensity to consume and the marginal propensity to save.

$$

The marginal propensity to consume is$\_\_\_\_\_\_\_.$

A$.$

the fraction of a change in disposable income that is spent on consumption

B$.$

the percentage of a$$ household's income that is not saved

C$.$

equal to the slope of the

$45$degrees$$

line

D$.$

greater than the slope of the

$45$degrees$$

line

Part $2$

The marginal propensity to save is$\_\_\_\_\_\_\_.$

A$.$

the percentage of a$$ household's income that is not spent on consumption goods and services

B$.$

equal to the slope of the

$45$degrees$$

line

C$.$

greater than the slope of the

$45$degrees$$

line

D$.$

the fraction of a change in disposable income that is saved

Part $3$

We calculate the marginal propensity to consume as$\_\_\_\_\_\_\_,$ and the marginal propensity to save as$\_\_\_\_\_\_\_.$

A$.$

Upper Delta$$Cdivided by$$Upper Delta$$YD$$;

Upper Delta$$Sdivided by$$Upper Delta$$YD

B$.$

$1$; $0$

C$.$

$0$; $1$

D$.$

Upper Delta$$Cdivided by$$Upper Delta$$Y$$;

Upper Delta$$Sdivided by$$Upper Delta$$Y