-Using the Data from the Above Table, the Marginal Propensity

question 99

Multiple Choice

-Using the data from the above table, the marginal propensity to save is

• A) constant at 0.75.
• B) falling as disposable income is rising.
• C) 0 when disposable income is $600.
• D) constant at 0.25.

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Definitions:

Expected Dividend

The forecasted payment of profits by a corporation to its shareholders, usually announced by the company's board of directors.

Dividend Growth Rate

The rate of growth in a company's dividend payments, expressed as an annual percentage.

Expected Return

The anticipated profit or loss from an investment over a certain period of time, often expressed as a percentage.

Paid Dividends

Cash or other assets distributed to shareholders out of a corporation's earnings.