The marginal propensity to save (MPS) is the
A) fraction of additional income that is saved.
B) amount of saving that is later consumed.
C) total amount of income that is saved.
D) part of consumption spending that does not depend on income.
A
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Suppose that a monopoly is currently producing the quantity at which marginal revenue is less than marginal cost. The monopoly can increase its profit by ________
A) shutting down B) lowering its price and increasing its output C) raising its price and decreasing its output D) lowering its price and decreasing its output
In monopolistic competition, firms do not have to produce innovative products because they have downward-sloping demand curves
Indicate whether the statement is true or false
What is a monopsony and how does a monopsonistic firm determine the wage rate to pay its employees?
What will be an ideal response?
An increase in the overall level of prices in an economy is referred to as
a. the income effect. b. inflation. c. deflation. d. the substitution effect.