If the Marginal Propensity to Save (MPS) in a Country

question 44

True/False

If the marginal propensity to save (MPS) in a country is 0.1, then any increase in autonomous expenditure would multiply output in the economy by 10.

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Definitions:

Materials Quantity Variance

The variance between the actual amount of materials utilized in manufacturing and the anticipated amount, multiplied by the established unit cost.

Raw Materials Price Variance

The difference between the actual cost and the standard cost of raw materials used in production.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected amount of materials that should have been used, measured at the standard cost.

Labor Efficiency Variance

The deviation between the actual hours taken to produce a unit of output and the standard hours expected, multiplied by the standard labor rate.