The Marginal Propensity to Save (MPS) Is Equal to the

question 238

Multiple Choice

The marginal propensity to save (MPS) is equal to the

• A) slope of the savings function.
• B) slope of the 45 degree-line.
• C) reciprocal value of the MPC.
• D) difference between consumption and income.

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Definitions:

Profit/(Loss) Realized

The actual gain or loss generated from completing a transaction.

Intercompany Sale

The sale of goods or services between divisions or subsidiaries within the same parent company.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the usage, wear and tear, or obsolescence of the asset.

Effective Tax Rate

The average percentage that companies or individuals pay in taxes on their total income.