The marginal propensity to save is:

A. Equal to (1 + MPC).
B. The fraction of each additional dollar of saving that goes to the stock market.
C. The fraction of each additional dollar of disposable income that goes to saving.
D. (Total savings) รท (total disposable income).


C. The fraction of each additional dollar of disposable income that goes to saving.

Economics

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In the IS model, assuming that the real interest rate does not change, an increase in autonomous ________ leads to an increase in the equilibrium level of ________

A) investment; consumption B) consumption; investment C) net exports; investment D) all of the above E) none of the above

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Which of the following countries has lower income mobility than the United States?

A. United Kingdom B. Germany C. Neither of these countries have lower income mobility than the United States. D. Both of these countries have lower income mobility than the United States.

Economics

The recent experiences in Greece, Portugal, and Ireland make the euro

A. seem very unlikely to fail because of decreasing debt levels. B. seem very unlikely to fail because of increasing interest rates. C. seem somewhat likely to fail because of increasing debt levels. D. seem somewhat likely to fail because of increasing interest rates.

Economics

Governments in certain nations are considering adopting policies to raise their low birthrates because of the concern with having:

A. High rates of inflation B. High rates of unemployment C. Too many soldiers for national defense D. Too few workers to support social programs

Economics