The Marginal Propensity to Save Is

question 207

Multiple Choice

The marginal propensity to save is

• A) total saving divided by total disposable income.
• B) total saving divided by the change in disposable income.
• C) the change in saving divided by the change in consumption expenditure.
• D) the change in saving divided by the change in disposable income.

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Definitions:

Median Voter Theorem

A theory suggesting that a majority rule voting system will select the outcome most preferred by the median voter.

Middle-of-the-Road

A course of action or opinion that avoids extremes and adopts a moderate or balanced viewpoint.

Median Voter

A theoretical concept in political economy and public choice theory that suggests policies are determined by the preferences of the median voter when voters are positioned along a single policy dimension.

Voter Type

Refers to categories of voters distinguished by specific characteristics such as political preference, age, or socioeconomic status.