Refer to the Above Data

question 75

Multiple Choice

Refer to the above data.At the $100 level of income, the average propensity to save is:

• A).10.
• B).20.
• C).25.
• D).90.

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Definitions:

Straight-line Depreciation

A technique of distributing the expense of a physical asset uniformly over its operational lifespan.

Accelerated Depreciation

A method of depreciation in which an asset loses book value at a faster rate than the traditional straight-line method over its useful life.

Useful Life

The expected time period over which an asset is useful to the owner.

Double-declining-balance

An accelerated method of depreciation which double the rate of normal depreciation, reducing the value of assets more quickly.