The _____ Measure(s) the Proportion of Additional Income That Consumers

question 223

Multiple Choice

The _____ measure(s) the proportion of additional income that consumers spend.

• A) spending multiplier
• B) marginal propensity to consume
• C) marginal propensity to save
• D) spending multiplier, the marginal propensity to consume, and the marginal propensity to save

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Definitions:

Foreign Exchange Gain

A profit that results from a favorable change in exchange rates affecting the value of investments held in foreign currencies.

Foreign Exchange Loss

A loss resulting from holding foreign currencies or foreign currency transactions when the exchange rate moves unfavorably.

Export Sale

A transaction where goods or services produced in one country are shipped to another country for sale.