The Table Below Shows Disposable Income and Desired Consumption for a Closed

question 103

Multiple Choice

The table below shows disposable income and desired consumption for a closed economy with no government. TABLE 21-2 Refer to Table 21-2.The marginal propensity to save is equal to

• A)0.8.
• B)0.67.
• C)0.6.
• D)0.4.
• E)0.2.

Understand the relationship between trade deficits/surpluses and national welfare.

Comprehend the basics of the foreign exchange market and exchange rate mechanisms.

Understand the concept of balance of payments and its components.

Learn the effects of currency appreciation and depreciation on a nation's economy.

---

Definitions:

Specific

Clearly defined or identified; precise and unambiguous.

Challenging Goals

Objectives that are ambitious and require substantial effort and planning to achieve, often motivating individuals or teams to improve their performance.

Equity Theory

A theory of motivation that suggests individuals are motivated by their perception of fairness in the distribution of rewards and resources.

Inputs

Anything that people give up, offer, or trade to their organization in exchange for outcomes.