The marginal propensity to save (MPS) is
A. the percentage of an additional dollar of real disposable income that will go toward additional real savings.
B. the percentage of real disposable income saved.
C. the rate at which real savings changes over time.
D. the difference between the amounts of real disposable income consumed and saved.
Answer: A
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Consider an economy with only two goods: bread and wine. In 1982, the typical family bought 4 loaves of bread at 50¢ per loaf and 2 bottles of wine for $9 per bottle. In Year X, bread cost 75¢ per loaf and wine cost $10 per bottle. The CPI for Year X (using a 1982 base year) is:
a. 100. b. 115. c. 126. d. 130.
The Federal Reserve System is divided into:
7 districts 12 districts 15 districts 5 districts
If each taxpayer paid the same lump-sum amount regardless of income level, the tax system would be:
A. disproportionate. B. progressive. C. proportional. D. regressive.
Which of the following describes a characteristic of a perfectly competitive market?
A) There are many buyers but few sellers. B) There are many sellers but few buyers. C) There are many buyers and sellers. D) Equilibrium is achieved when demand for the product sold in the market equals the supply.