The Marginal Propensity to Save Is Given by

question 46

Multiple Choice

The marginal propensity to save is given by

• A) the change in saving divided by the change in consumption.
• B) saving divided by the change in disposable personal income.
• C) saving divided by disposable income.
• D) the change in saving divided by the change in disposable personal income.

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Definitions:

Fixed Cost

Fixed costs are business expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.