The Marginal Propensity to Save Is Calculated as

question 72

Multiple Choice

The marginal propensity to save is calculated as

• A)saving divided by disposable income.
• B)saving divided by the change in disposable income.
• C)the change in saving divided by the change in consumption expenditure.
• D)the change in saving divided by the change in disposable income.
• E)the change in saving divided by disposable income.

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Definitions:

Groupthink

A psychological phenomenon that occurs within a group of people, where desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Social Psychologists

Scientists who study how individuals think, influence, and relate to one another in social contexts.

Cohesiveness

The degree to which members of a group or social unit feel bonded together and committed to each other.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms, politics or being influenced by peer pressure.