If the average propensity to consume is 0.80, then the average propensity to save is

A. 1.20
B. 0.20.
C. 0.80.
D. 1.25.


Answer: B

Economics

You might also like to view...

Normative statements

i. describe how the world is. ii. describe how the world ought to be. iii. depend on people's values and cannot be tested. A) ii only. B) i and iii. C) iii only. D) i only. E) ii and iii.

Economics

Following the collapse of its housing and stock markets around 1990, the Japanese government ________

A) effectively managed the crisis, limiting the damage to the Japanese economy B) took only limited action in response to the crisis C) was able to rely on private initiatives in quickly reversing the course of GDP in the 1990s D) fixed the value of the yen to the Euro and pursued an aggressive monetary policy

Economics

Data presented in the text compare exports per capita in the early 1790s with exports per capita just prior to the Revolution. The data show that by the early 1790s, exports per capita had increased in _____________, but had decreased in ___________________

a. the Upper South; the Lower South b. the Upper South; New England c. New England; the Middle Atlantic states d. the Middle Atlantic states; the Upper and Lower South

Economics

Which of the following is usually discussed in the case against government?

A) special interest groups and transfers B) the unintended effects of governments actions C) removal from the prisoner's dilemma D) a and b E) none of the above

Economics