The Marginal Propensity to Save Is

question 217

Multiple Choice

The marginal propensity to save is

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

---

Definitions:

Penalty

A punishment imposed for violating a law, rule, or contract.

Cooperate

To work or act together towards a common goal or benefit, often requiring compromise or teamwork.

Policymakers

Individuals or members of government bodies responsible for creating and implementing laws and policies.

Legitimate Purposes

Valid or acceptable reasons or objectives for a policy, action, or law as recognized by a governing body or morality.