If Income Is $35,000 and the Average Propensity to Save

question 122

Multiple Choice

If income is $35,000 and the average propensity to save is 0.46, what is consumption?

• A) $15,500
• B) $16,100
• C) $18,900
• D) $19,500

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Definitions:

Share Of Total Income

The proportion of total national or group income that is earned by individuals or segments of a population, often used to analyze income distribution and inequality.

Income Inequality

The unequal distribution of income within a population, often measured by various statistical means like the Gini coefficient.

Earnings Received From Wealth

Income generated from assets owned, such as dividends from stocks, interest on bonds, or rent from property.

Reduction In Income Inequality

Refers to efforts or policies aimed at decreasing the disparity in income distribution among a population, thereby promoting economic fairness.