Aggregate Desired Consumption Divided by Aggregate Disposable Income Is Called

question 64

Multiple Choice

Aggregate desired consumption divided by aggregate disposable income is called the

• A)average propensity to spend.
• B)average propensity to save.
• C)marginal propensity to save.
• D)average propensity to consume.
• E)total propensity to save.

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Definitions:

Lump-Sum Basis

A method of payment or compensation with a fixed total amount to be paid in one single sum, rather than through installments or percentages.

Base Salary Levels

The initial rate of compensation that an employee receives as a wage, excluding any extra bonuses, benefits, or allowances.

Seasonal Fluctuations

Variations in business activity, performance, or phenomena that occur at specific times of the year due to changes in season.

Intrinsic Motivation

The internal drive to perform a task due to the inherent satisfaction or interest in the task itself, rather than external rewards or pressures.