If the Marginal Propensity to Save Is 0

question 63

Multiple Choice

If the marginal propensity to save is 0.3, the size of the multiplier is:

• A) 3.3.
• B) 2.3.
• C) 1.3.
• D) 0.7.

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Definitions:

Expected Return

Expected return is a financial term representing the average of all possible returns for a given investment, factoring in the likelihood of each outcome.

Single Life Annuity

A type of annuity that provides payments for the life of the annuitant only and ends upon the annuitant's death.

Annuity Contract

A financial product sold by insurance companies that guarantees a series of payments in exchange for an initial investment, aimed at securing retirement income.

Taxable Amount

The portion of income or transaction value that is subject to taxation by governmental authorities.