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If an experimental finding is reliable, which of the following statements is true?
Disposable Income
The total funds available to families for spending and saving after subtracting income tax.
Transfer Payments
Payments made by governments to individuals without any expectation of a good or service in return, such as welfare or unemployment benefits.
Marginal Propensity
This measures the likelihood of an individual or entity to spend an additional unit of currency. Specifically, it assesses how changes in income affect spending or saving habits.
Average Propensity
The ratio of total spending (consumption or saving) to total income, indicating how income is distributed across different economic activities.
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