The Greater Is the Marginal Propensity to Consume

question 192

Multiple Choice

The greater is the marginal propensity to consume:

• A)the smaller is the marginal propensity to save.
• B)the higher is the interest rate.
• C)the lower is the average propensity to consume.
• D)the lower is the price level.

---

Definitions:

Coupon Rate

The annual interest rate payable on a bond's face value by its issuer, representing the yield paid to bondholders.

Par Value

A nominal value assigned to a security by the issuer, often used in the context of bonds or stock.

Yielding

The income return on an investment, such as the interest or dividends received from holding a particular security.

FASB 13

Accounting standard issued by the Financial Accounting Standards Board related to lease accounting.