The Marginal Propensity to Save Is Given by

question 46

Multiple Choice

The marginal propensity to save is given by

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

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Definitions:

Capital Lease

A lease agreement that transfers substantially all the risks and benefits of ownership to the lessee, effectively treated as a purchase by the lessee.

Unguaranteed Residual Value

The estimated future value of an asset at the end of its lease term that is not guaranteed by the lessee or a third party.

Lease Obligation

A financial commitment to make future payments under a lease agreement.

Sales-leaseback Transaction

A financial arrangement where one sells an asset and immediately leases it back from the buyer, effectively freeing up cash while retaining the use of the asset.