If Income Rises from $3,000 Per Month to $3,500 Per

question 15

Multiple Choice

If income rises from $3,000 per month to $3,500 per month and savings increase from $200 per month to $400 per month, what is the marginal propensity to save?

• A) 0.4
• B) 0.8
• C) 1.25
• D) 2.5

---

Definitions:

Cy Pres Doctrine

A legal principle that allows a court to amend the terms of a charitable trust or gift if its original purpose becomes impossible or impracticable to achieve.

Settlor

A person who creates a trust. Also called trustor.

Charitable Purposes

Activities undertaken with the aim of providing relief to the poor, advancing education, or other acts benefiting the community without profit motive.

Formalities

Specific procedures or requirements that must be observed in legal transactions, such as contracts or the execution of a will.