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.

---

Definitions:

Psychosocial Perspective

A viewpoint that considers individual psychological development within the context of social relationships and societal structures.

Cognitive Development

The process by which a person perceives, thinks, and gains understanding of their world through the interaction and influence of genetic and learned factors.

Moral Development

The process through which individuals grow in their understanding of morals, ethical behavior, and the reasoning behind their own choices regarding right and wrong.

Postconventional

A stage of moral development where individuals make decisions based on internal principles and values, rather than conforming to societal norms.