Examlex

Solved

Suppose an Individual's Marginal Propensity to Save Is 0

question 59

Multiple Choice

Suppose an individual's marginal propensity to save is 0.3. If his income increases by £100, by how much will his consumption increase?


Definitions:

Security Agreement

A legal contract that grants a lender a security interest in an asset, which serves as collateral for a loan.

Standards

Established requirements, criteria, or guidelines commonly used for comparison, measurement, or quality assessment.

Default

Failing to fulfill a legal obligation or agreement, particularly in paying back a loan.

Secured Creditor

A creditor with the benefit of a security interest in assets of the debtor, giving them a preferential position in the event of the debtor's insolvency.

Related Questions