The Marginal Propensity to Save Is

question 242

Multiple Choice

The marginal propensity to save is

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

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Definitions:

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash with original maturities of three months or less.