Refer to the Given Data

question 105

Multiple Choice

$$\begin{array} { | c | c | } \hline \text { Disposable Income } & \text { Consumption } \\\hline \$ 200 & \$ 205 \\\hline 225 & 225 \\\hline 250 & 245 \\\hline 275 & 265 \\\hline 300 & 285 \\\hline\end{array}$$ Refer to the given data. At the $200 level of disposable income,

• A) the marginal propensity to save is 2½ percent.
• B) dissaving is $5.
• C) the average propensity to save is 0.20.
• D) the average propensity to consume is 0.80.

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Definitions:

NX

Stands for Net Exports, which is the difference between a country's total value of exports and total value of imports.

Equations

Mathematical statements that assert the equality of two expressions, often used in modeling relationships in various sciences.

Real Return

The return on an investment after adjusting for inflation, reflecting the actual purchasing power of the amount returned.

Net Capital Outflow

The skew in investment patterns between domestic entities investing abroad and foreign entities investing domestically.