The Marginal Propensity to Save Refers to the

question 79

Multiple Choice

The marginal propensity to save refers to the

• A)additional saving that occurs out of an additional dollar of income.
• B)additional saving that occurs out of an additional dollar of investment.
• C)total saving divided by a change in income.
• D)change in saving divided by total income.
• E)additional saving that occurs over time.

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Definitions:

Diluted Earnings

Net income available to common shareholders, adjusted for the effects of all potential dilutive securities.

Ranking

Ordering or grading things or individuals in terms of quality, importance, or performance.

Impact

The effect or influence of one factor on another, often used to describe the outcomes or changes resulting from a particular action or policy.

Financial Accounting

Financial accounting is the branch of accounting that focuses on the preparation of financial statements for external users, such as investors and creditors.