The Marginal Propensity to Save Shows _____

question 50

Multiple Choice

The marginal propensity to save shows _____.

• A) the extra saving generated by one unit of extra income
• B) the proportion of income that is spent on consumption
• C) the proportion of total income that is saved by an individual
• D) the extra savings by households when interest rates increase

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Definitions:

Power Company

A business entity that generates, transmits, and distributes electricity to consumers.

Expected Value

The long-run average value of repetitions of an experiment it represents, often considered as the mean of a probability distribution.

Perfect Information

A situation in game theory or economics where all participants have full and equal knowledge of all relevant aspects.

Candy Store

A retail shop specializing in the sale of candies, sweets, and sometimes other confectionery items.