Total Desired Saving Divided by Total Income Is Called the

question 7

Multiple Choice

Total desired saving divided by total income is called the

• A)average propensity to consume.
• B)average propensity to save.
• C)average propensity to spend.
• D)marginal propensity to save.
• E)total propensity to save.

---

Definitions:

Patent

A legal authorization granted to an inventor to exclusively manufacture, use, or sell an invention for a certain number of years.

Ordinary Annuity

A series of equal payments made at regular intervals, with interest compounded at the end of each period.

Nominal Interest

The stated or advertised rate of interest on a loan or investment, not accounting for inflation or compounding effects.

Effective Rate

The actual interest rate on an investment or loan, taking into account the effect of compounding over a given period.