Following Is Consumption Schedules for Three Private Closed Economies

question 78

Multiple Choice

Following is consumption schedules for three private closed economies.DI signifies disposable income and C represents consumption expenditures.All figures are in billions of dollars. Refer to the above data.The marginal propensity to save:

• A)is highest in economy (1).
• B)is highest in economy (2).
• C)is highest in economy (3).
• D)cannot be determined from the data given.

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Definitions:

Misappropriation Theory

A legal theory regarding insider trading that holds individuals liable for trading on confidential information.

SEC Rule 10b5-2

A regulation established by the Securities and Exchange Commission (SEC) that clarifies the definition of insider trading, particularly in relation to the misuse of non-public information.

Negligence

The failure to take reasonable care to avoid causing injury or loss to another person.

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