The Marginal Propensity to Save Equals the

question 289

Multiple Choice

The marginal propensity to save equals the

• A) change in savings from a change in consumption expenditure.
• B) change in savings resulting from a one dollar change in disposable income.
• C) average amount of income saved.
• D) ability to save the same percentage of income each month.

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Definitions:

Enterprise Value

A measure of a company's total value, often used as a more comprehensive alternative to equity market capitalization.

EBITDA

Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of a company's overall financial performance.

Net Working Capital Turnover

A ratio that measures how effectively a company is using its net working capital to generate sales.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's operating cycle if longer.