The marginal propensity to save is defined as
What will be an ideal response?
the change in saving divided by the change in disposable income
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A game involving two players with two possible strategies is a prisoner's dilemma if each player has a dominant strategy and:
A. neither player plays their dominant strategy. B. each player's payoff is higher when both play their dominant strategy than when both play their dominated strategy. C. each player's payoff is higher when both play their dominated strategy than when both play their dominant strategy. D. there is a Nash equilibrium that yields the highest payoff for both players.
If the price of a good increases, all else the same, then the consumer's total utility will
A) increase. B) decrease. C) remain the same as consumption shifts to cheaper goods. D) decrease if there are no substitutes for the good and remain the same if there are substitutes for the good.
Suppose the world had only two countries and domestic residents of country A purchased $50 billion of assets from country B and country B purchased $30 billion of assets from country A. What would the net capital outflows of both countries be?
a. $50 billion for country A and $30 billion for country B b. $30 billion for country A and $50 billion for country B c. $20 billion for country A and -$20 billion for country B d. -$20 billion for country A and $20 billion for country B
Fumiyo deposits $90,000 into Blue Flag Bank and Lyle deposits $75,000. Blue Flag Bank’s required reserve ratio is 11 percent. How much of these two deposits can the bank lend to borrowers?
a. $146,850 b. $18,150 c. $15,375 d. $150,000