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:

Price

The cost at which something is being sold, reflecting the value that consumers or purchasers assign to a good or service.

Utility

An economic term referring to the total satisfaction received from consuming a good or service.

Marginal Utility

The increased gratification or utility derived from the consumption of an extra unit of a good or service.

Energy Drink

A type of beverage containing stimulant compounds, usually caffeine, that is marketed as providing mental and physical stimulation.