The average propensity to save (APS) is
A) the difference between the amounts of real disposable income consumed and saved.
B) the percentage of additional real disposable income that will go toward real saving.
C) the rate at which real savings changes over time.
D) the percentage of real disposable income saved.
D
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Identify the difference between the short-run and the long-run
Government spending affects aggregate demand directly, and tax changes affect aggregate demand indirectly. Therefore, changes in
a. taxes are ineffective in changing aggregate demand. b. government spending affect aggregate demand more quickly than changes in taxes. c. taxes are virtually useless as a stabilization tool. d. government spending should be used with great caution.
A mechanism for reallocating risk is:
A. risk premiums. B. risk pooling. C. dividend pooling. D. None of these statements is true.
Suppose Smith wants one iPhone no matter what the price is between $0 and $350, Jones wants one iPhone no matter what the price is between $0 and $200, and Griffith wants one iPhone no matter what the price is between $0 and $450. In this case, each individual buyer's demand curve will be __________________ and the market demand curve will be __________________
A) downward sloping; vertical B) vertical; downward sloping C) vertical; vertical D) downward sloping; downward sloping