FIGURE 21-1 Refer to Figure 21-1

question 108

Multiple Choice

FIGURE 21-1 Refer to Figure 21-1.The marginal propensity to save can be expressed as

• A)DE/Y₁Y_3.
• B)DE/Y₂Y_3.
• C)DF/Y₂Y_3.
• D)FE/Y₁Y_3.
• E)FE/Y₂Y_3.

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Definitions:

Income Earners

Individuals or entities that receive compensation for providing goods or services, or through investments.

Annual Family Income

The total amount of money earned by members of a family in one year, including wages, salaries, benefits, and other income sources.

Income Distribution

The way in which a nation’s total GDP is spread amongst its population, affecting the economic equality or disparity in a society.

Equitable Distribution

A principle aiming for a fair allocation of resources and wealth across society. It doesn't necessarily mean equal distribution but focuses on ensuring individuals have fair access to resources and opportunities.